Wednesday, 05 August 2015 12:28
TOKYO: Tokyo stocks rose 0.46 percent Wednesday, boosted by a weak yen and upbeat Japanese earnings reports, but market heavyweight Fast Retailing tumbled owing to weak July sales at its Uniqlo clothing chain in Japan.
The Nikkei 225 index at the Tokyo Stock Exchange added 93.70 points to finish at 20,614.06, while the Topix index of all first-section shares rose 0.36 percent, or 6.02 points, to 1,665.85.
“The domestic environment is good overall. The economy is on its way to a recovery, and corporate earnings are generally doing well,” SMBC Nikko Securities manager Hiroichi Nishi told Bloomberg News.
“In terms of demand, individual investors are looking to buy on dips.”
Of the companies in the Topix that have reported quarterly results this season, 62 percent exceeded profit expectations, an improvement from the 48 percent that beat forecasts in the previous quarter, according to data compiled by Bloomberg.
Honda shares edged up 0.80 percent to 4,357 yen, while Fast Retailing dropped 4.72 percent to 58,480 yen as its Japanese Uniqlo stores reported disappointing monthly sales.
Toyota fell 2.35 percent to 7,930 yen. Investors were disappointed that the automaker did not lift its full-year profit forecast after reporting a 10 percent rise in quarterly earnings Thursday.
Daikin Industries added 5.0 percent after the Nikkei newspaper said the air-conditioner maker will post a 10 percent increase in operating profit
On currency markets, the dollar edged up to 124.40 yen against 124.36 in New York.
A weaker yen is positive for Japanese exporters as it makes them more competitive abroad and inflates the value of repatriated profits.
