Around the World's Markets: Tokyo

STOCKS TRIMMED most of their early gains to close up 0.5 per cent at 13,536.6, after soaring more than 2 per cent in afternoon trade following New York's record highs. Traders said fears about the dollar's outlook and Brazil had made investors nervous.

Selected blue chips such as Sony and Canon fell into negative territory amid concerns that their earnings forecasts would be downgraded on the yen's recent strength, with analysts warning that 110 yen to the dollar was being seen as a critical level for equities.