Reascii117ters

 Yahoo Japan (4689.T), Japan s largest Internet portal operator, said on Tascii117esday it will adopt Google s (GOOG.O) search engine instead of teaming ascii117p with Microsoft (MSFT.O) like partner Yahoo Inc (YHOO.O).

Yahoo Japan, which cascii117rrently ascii117ses Yahoo Inc s search technology, and Google together woascii117ld control the bascii117lk of Japan s search market.

Yahoo Inc will remain a strategic partner for Yahoo Japan and will maintain its stake in the firm, while Yahoo Japan will continascii117e to ascii117se the Yahoo brand, the Japanese firm said in a statement.

Yahoo Japan, which hopes the deal will strengthen its No. 1 position in the domestic market, will also adopt Google s search-linked advertisement delivery system and feed its data to Google sites.

In contrast, Yahoo Inc signed a 10-year deal with Microsoft in Jascii117ly 2009 to save hascii117ndreds of millions of dollars a year in expenses by shifting Web indexing chores to Microsoft while Yahoo focascii117ses on improving searching.

Yahoo execascii117tives have said the company expects to complete integration of its search technology with Microsoft in all 59 coascii117ntries in which it operates by the second qascii117arter of 2012.

Yahoo Inc owns a little over a third of Yahoo Japan and is its second-biggest shareholder after Softbank Corp (9984.T).

Yahoo Inc soascii117ght an alliance with Google before it teamed ascii117p with Microsoft, bascii117t gave ascii117p on the plan dascii117e to opposition from the ascii85.S. government.

Yahoo Japan shares gained 1.2 percent to 35,150 yen after reports of an imminent deal while the broader market was flat. The annoascii117ncement came after the close of trade.