Around the World's Markets: Tokyo

FOREIGN BUYING continued to prop up Japanese stocks yesterday, and the benchmark Nikkei 225 index closed 74.79 points, or 0.45 per cent, higher at 16,554.5. The index was capped by domestic profit-taking amid widespread caution about the outlook for the Japanese economy.

There was heavy trading in both Mitsubishi Motors and Mazda Motors following local press reports of a possible tie-up. The two companies said the reports were merely speculation, although shares in both the motor groups soared by more than 6 per cent.