The Nikkei 225 Stock Average rose 0.46% to 17,452.62 (range: 17,404.62 - 17,502.02), unable to regain/hold the psychologically important level of 17,500. It was the third lightest trading day of the year, but buying of N225 futures after yesterday’s drop (despite an overall lack of bullishness and only a 0.1% gain to 17,410 (range: 17,410 - 17,530), finishing about 40 points below the benchmark), a rebound in Asian stocks and the yen, which weakened about 0.6% to 118.7 against the U.S. dollar, all helped the Nikkei close in positive territory. TOPIX 1st Section gained 0.18% to 1,710.07 (range: 1,703.21 - 1,714.54) as decliners actually outnumbered advancers 676 x 915 (139 unchanged). TOPIX 2nd Section fell for a 7th straight day, matching a losing streak last November. JASDAQ fell 1.1% to 79.36 (range: 79.19 - 80.22), continuing its funk (also seven straight down sessions). Kyocera (JP: 6971) (KYO) +0.96% to ¥11,520 and TDK (TDK) +1.18% to ¥10,260, seem to remain in favor, despite recent volatility, as we suggested in an earlier post.

Today’s light volume is obviously attributed to earnings season kicking off next week (see the calendar in right-margin of the Daily J for what companies are reporting). HOYA (JP: 77441) and Kao (JP: 4452) are two key names to watch on Monday. Yahoo! Japan (JP: 4689), Elpida Memory (JP: 6665), Fanuc (JP: 6954), Nikko Cordial (JP: 8603) and KDDI (JP: 9433) are some of the big names to watch Tuesday.

Note trading companies, including Mitsubishi, Mitsui and Itochu were all downgraded to “neutral” by Merrill Lynch today. Mitsui (JP: 8031) (MITSY) lost 0.72% to ¥2,065.

Morgan Stanley published research calling the insurance industry “attractive.” Millea Holdings (JP: 8766) (MLEA) gained 0.89% to ¥4,540.