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Tokyo stocks edge higher on strong corporate results, weaker yen
[July 30, 2014]

Tokyo stocks edge higher on strong corporate results, weaker yen


(Japan Economic Newswire Via Acquire Media NewsEdge) Tokyo stocks gained slightly Wednesday as buying backed by strong corporate results and a weaker yen offset selling to lock in recent gains.

The 225-issue Nikkei Stock Average ended up 28.16 points, or 0.18 percent, from Tuesday at 15,646.23. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 1.83 points, or 0.14 percent, higher at 1,292.24.



Tokyo stocks attracted modest buying, aided by investor optimism over the favorable business results released so far in the earnings season.

"Companies reporting strong results have been bought. Honda Motor became one of the symbolic names in this trend," said Ayako Terada at Nomura Securities Co.'s investment research department.


Honda advanced 110 yen, or 3.1 percent, to 3,658 yen on its earnings report that raised the automaker's consolidated net profit outlook in the year through March next year to 600 billion yen, up 4.5 percent from the previous year.

The U.S. dollar's firmness in the lower 102 yen zone also underpinned the market, Terada said.

However, the market was top-heavy due to selling to lock in gains after its climb for the third straight trading day, she added.

Hiroaki Hiwada, a strategist at Toyo Securities Co., said Japan's worse-than-expected industrial production data for June seems to have somewhat soured investor sentiment.

The government said its industrial output fell a seasonally adjusted 3.3 percent in June from the previous month, marking the biggest fall since March 2011, when the devastating earthquake and ensuing tsunami hit northeastern Japan.

Despite gains in the key indexes, declining issues outnumbered advancing ones by 948 to 701 on the First Section, while 166 closed unchanged.

Precision machinery was one of the day's strongest sectors, with Konica Minolta jumping 39 yen, or 3.7 percent, to 1,108 yen and Olympus climbing 70 yen, or 1.9 percent, to 3,760 yen.

Other major gainers included consumer finance, nonferrous metal and steel shares.

NSK surged 91 yen, or 6.6 percent, to 1,462 yen after the bearing manufacturer said Tuesday its group net profit in the year through March 2015 is projected to increase to 56.50 billion yen, up 13.0 percent from its earlier projection.

Tokyo Electron grew 103 yen, or 1.6 percent, to 6,713 yen after the semiconductor maker announced the previous day its consolidated net profit in the April-September period is forecast to stand at 15.50 billion yen, up 40.9 percent from the previous projection.

Bucking the trend, Nomura Holdings dropped 9.10 yen, or 1.4 percent, to 657 yen one day after the brokerage house said its group net profit in the April-June quarter plunged 69.9 percent year-on-year to 19.86 billion yen.

Trading volume on the main section totaled 1,943.98 million shares, up from Tuesday's 1,681.03 million shares.

(c) 2014 Kyodo News

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