TOKYO, May 11 (Xinhua) -- Japan's benchmark Nikkei stock index ended fractionally higher Thursday as technology issues followed their U.S. peers higher, although shares were sold following some disappointing domestic earnings forecasts.

The 225-issue Nikkei Stock Average edged up 4.54 points, or 0.02 percent, from Wednesday to close the day at 29,126.72.

The broader Topix index, meanwhile, shed 2.82 points, or 0.14 percent, to finish at 2,083.09.

Brokers here said that stocks weighing on the market were those reporting worse-than-expected earnings outlooks, including those from Mazda Motor and pharmaceutical firm Kyowa Kirin.

"There were more companies that have reported weaker-than-expected forecasts than those with outlooks that exceeded market projections," Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., was quoted as saying.

Other market strategists pointed to ongoing economic concerns in the U.S. as influencing future market moves, while suggesting domestic stock prices, often deemed undervalued, may be reaching their peak.

"With the Nikkei average rising to the highest levels this year, from this point, we have to start wondering if these valuation levels are reasonable. With that in mind, I think it's becoming difficult to chase further price increases," Kazuo Kamitani, a strategist at Nomura Securities, was quoted as saying.

"Looking forward, we need to keep an eye on the news flow about the U.S. debt ceiling issue while following earnings announcements," Kamitani said.

Among issues losing ground on downbeat earnings outlooks, Mazda Motor Corp. reversed 2.7 percent, after downwardly revising its profit forecast, for the same reason Kyowa Kirin tumbled 13.0 percent.

Sumitomo Metal Mining Co. after reporting a subpar earnings outlook, was another notable loser, tumbling 11.7 percent.

Technology-linked issues helped support the market's downside, however, with chip-testing equipment maker Advantest gaining 2.5 percent, buoyed by Tokyo Electron rising 1.6 percent on hopes for a robust profit guidance set to be released later in the day.

Fujifilm Holdings Corp., was among the day's notable winners, climbing 5.9 percent after its earnings report came in above median market expectations.

By the close of play, nonferrous metal and marine transportation shares comprised those that declined the most, while mining and service-linked issues led gainers.

The turnover on the Prime Market on the penultimate trading day of the week came to 2,962.72 billion yen (22.00 billion U.S. dollars). Enditem

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