Tokyo stocks end flat on U.S. shares advance, yens strength

Tokyo, March 22 (Xinhua) -- Tokyo stocks ended flat Friday in slightly choppy trade, after a positive lead on wall street's overnight gains were offset by the yen's appreciation against the U.S. dollar.

The 225-issue Nikkei Stock Average edged 18.42 points, or 0.09 percent higher, from Wednesday to close the day at 21,627.34.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 2.72 points, or 0.17 percent, to finish at 1,617.11.

Buying got off to a relatively bright start in early trade, local brokers said, with the market mood brightened by U.S. shares rising overnight.

wall street got a boost from the U.S. Federal Reserve announcing at the conclusion of a two-day policy setting meeting a day earlier that interest rates would not be hiked this year, they added.

But while technology issues and their counterparts here gained, the U.S. dollar dropped against the yen, which hurt Japanese exporters reliant on a weak yen to boost competitiveness in overseas markets and profits when they are repatriated on favorable exchange rates, traders here highlighted.

Investors buying to secure second-half dividends from companies whose business year ends March 31, however, added some support, investment strategists here said.

"Buying aimed at securing dividend rights for various issues also supported the Tokyo market overall and took it back into positive territory," Maki Sawada, vice president of the investment research and investor services department at Nomura Securities Co. was quoted as saying.

But finance-related issues were pressured by speculation among some investors that following the Fed's move, the Bank of Japan may look to further lower rates included in its already ultra-loose easing policy, market analysts said.

Pharmaceutical issues also traded lower following Eisai and its partner Biogen announcing the cancellation of the trail of its newly-developed Alzheimer's disease drug.

By the close of play, technology, oil and coal product, mining and marine transportation issues comprised notable advancers, while decliners were led by pharmaceutical, farm and fishery, and insurance-linked issues.

Issues that rose outpaced those fell by 1,392 to 653 on the First Section, with 95 ending the day unchanged, and on the main section on Friday, 1,365.59 million shares changed hands, rising from Wednesday's volume of 1,145.16 million shares.

The turnover on the final trading day of the week came to 2,625.4 billion yen (23.75 billion U.S. dollars).

Markets here were closed on Thursday for a national holiday.