Japan's Utility, Steelmaker Stocks Gain on Dividend Outlook

Japanese utility company and steelmaker stocks gained, led by Tokyo Electric Power Co. and JFE Holdings Inc., as investors bet on companies that may offer higher dividends.

``Investors can buy utility and steelmaker stocks without much worry on the back of stable earnings and the prospect of better returns to shareholders,'' said Junichi Misawa, Junichi Misawa, who oversees $655 million at STB Asset Management Co. in Tokyo.

Inpex Holdings Inc. led energy-related stocks higher after crude oil gained by the most in two weeks. Toshiba Corp. jumped after Goldman, Sachs & Co. raised its rating on the stock to ``buy.''

The Nikkei 225 Stock Average slid 12.28, or 0.1 percent, to 16,752.34 as of 10:49 a.m. in Tokyo, after gaining as much as 0.3 percent. The broader Topix index was little changed at 1690.07.

Benchmarks may swing between gains and losses throughout the day before the settlement price of Nikkei 225 Stock Average March futures and options is determined tomorrow, said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management Co.

Tokyo Electric, Asia's largest power producer, rose 40 yen, or 1 percent, to 4,080. JFE, Japan's second-biggest steelmaker, advanced 90 yen, or 1.3 percent, to 7,300. Nippon Steel Corp., Japan's No. 1, jumped 23 yen, or 2.7 percent, to 876.

The indicated dividend yield for Tokyo Electric is 1.5 percent, according to Bloomberg data. The 12-month average yield for all companies in the Topix is 1.1 percent. The yield is 1.6 percent on average for steelmakers as a group.