Tokyo stocks ended mixed today with healthy gains in Mitsui Fudosan and other domestic-leaning stocks due to an encouraging survey of corporate confidence offset by losses in high-tech exporter shares.
The Bank of Japan's "tankan" survey released before the market opened showed the index for big manufacturers rose to minus 18 in June from minus 38 in March. It was better than economists' expectations and the biggest improvement on record.
A wide range of sectors including banks, construction, steel and real estate rode that figure higher, but investor worries about the stronger yen and uncertainty over the near-term course for a volatile Wall Street kept enthusiasm in check.
"The tankan was good. It shows that confidence in the economy is coming back," said Mr Fumiyasu Sato, chief investment officer at CDIC IXIS Asset Management.
"There are a number of worrisome factors that, like they did today, will hold us back this week," Mr Sato added, referring in part to jitters over the possibility of a terrorist attack on the United States on July 4th..
Sony, weighed down by a stronger yen eating into the value of its overseas sales, lost 2.21 percent to 6,190 yen. That helped push the tech-focused Nikkei average off 0.25 percent or 26.40 points to 10,595.44.
The TOPIX index fared better, rising 0.36 percent or 3.74 points to 1,028.63.
Institutional investors cashed in on the Nikkei's five percent surge in the two previous sessions since last Wednesday when it finished at a four-month low.
"I don't see much extra climbing room this week. The Nikkei might touch 10,800 - at best it goes a tad more," said Mr Koichi Seki, an equities manager at Chuo Securities.
The tankan survey showed the economic recovery spreading from big export-oriented manufacturers through other parts of the Japanese economy, offering a glimmer of hope to banks, builders and other domestic-focused sectors.