Business / Financial Markets | TSE DATA & REPORT

Stocks turn higher on strong earnings reports

JIJI

Stocks turned higher Tuesday, boosted by robust corporate earnings reports.

The Nikkei 225 gained 155.42 points, or 0.69 percent, to end at 22,662.74. On Monday, the key market gauge shed 17.86 points.

The Topix, which covers all first-section issues on the Tokyo Stock Exchange, advanced 13.15 points, or 0.76 percent, to 1,746.05 after dropping 9.68 points Monday.

The market was shored up by purchases of issues backed by brisk earnings, including mobile phone carrier SoftBank Group, a weighted Nikkei component, market sources said.

Tokyo stocks expanded gains in the afternoon, with investors taking heart from the strength of Chinese equities, according to the sources.

Brokers attributed Tuesday’s advance partly to a rise in U.S. equities Monday.

Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc., said investor sentiment was lifted by “the stability of overseas markets.”

“There was no major (fresh) selling factor” Tuesday, Fujii added.

Yutaka Miura, senior technical analyst at Mizuho Securities Co., said futures-led purchases helped push up the market.

Still, Miura suggested that concerns over escalating U.S.-China trade friction continued to overshadow the Tokyo market.

Rising issues exceeded falling ones 1,382 to 644 in the first section, while 77 issues were unchanged.

Volume edged down to 1.324 billion shares from 1.350 billion Monday.

SoftBank Group closed 6.54 percent higher after announcing Monday that its operating profit in April-June surged 49.2 percent from a year before to ¥715 billion.

Cybermall operator Rakuten was buoyant owing to its stronger than expected operating profit in the six months through June, released Monday, brokers said.

Automaker Suzuki and information technology services provider NTT Data were also on the plus side.

By contrast, electronics maker Pioneer plunged 23.72 percent after reporting Monday a consolidated operating loss of ¥1.575 billion for April-June, far larger than a loss of ¥243 million a year earlier.

Other major losers included clothing retailer Fast Retailing and industrial robot producer Fanuc.