After struggling to find its direction for weeks, the Tokyo stock market appears poised to test higher ground.

Once it becomes evident that no lasting decline is in the offing, investors will move in, counting on the strength of economic fundamentals both at home and abroad.

The recent release of January data on customs-cleared export deals in Japan and fresh orders for durable goods in the U.S. offered fresh evidence of the strength of fundamentals.

Specifically, Japan's exports increased for the third consecutive month, led by high-technology products.

Particularly strong among high-tech sectors are manufacturers of Internet-related and digital products such as semiconductors, condensers, communications equipment, audiovisual equipment, liquid-crystal devices and optical fibers.

Makers of general machinery, such as motors and injection machines, are improving their performance as well.

Exporters will contribute to Japan's economic activity more strongly if the yen's depreciation continues.

While January orders for durable goods in the U.S. drew strong attention after worries subsided over the Year 2000 computer problem, core orders scored the sharpest year-on-year gain -- more than 20 percent -- since 1990. In value, the orders set a new high, surpassing the previous record by a wide margin.

In particular, orders for industrial products, including computers and other office automation equipment, soared. As shipments of industrial products and electric machinery also increased sharply, concern about inventory adjustments has subsided.

Material-processing sectors remain strong in the U.S.

In Japan, demand for information products keeps growing as demonstrated by a steep increase in the number of subscribers to NTT Mobile Communications Network Inc.'s i-Mode mobile phones.

Reflecting these circumstances, buying interest in the Tokyo market is spreading from leaders in strong sectors to companies trailing them. The scope of buying interest is expanding as well.

The market therefore is forecast to maintain its firm upward trend.