Tokyo: Tokyo stocks rallied on Wednesday as optimism returned to Asian markets and investors hunted bargains after recent dips, while watching corporate earnings reports.
The benchmark Nikkei 225 index ended up 2.16 percent, or 463.17 points, at 21,920.46, while the broader Topix index added 2.15 percent, or 34.66 points, to 1,646.12.
Rallies in New York provided a positive lead, while a strong yen helped exporters.
Traders shrugged off fresh Chinese indicators showing slowing factory activity in October.
“As investor spirit continued to improve, the market had only muted reaction to the disappointing Chinese data, keeping the Nikkei on track to end the morning session on a firm note,” Okasan Online Securities said in a commentary.
“Through the afternoon session, the market stayed solid, supported by the yen’s weakness and firm Hong Kong and Shanghai shares,” Okasan said.
The dollar rose to 113.22 yen from 112.97 yen in New York late Tuesday, with support for the US unit also coming from the Bank of Japan’s decision to lower its inflation forecast again.
Investors also cheered a stream of strong earnings reports, while there was little reaction from news that factory output fell in September from the previous month.
Among major shares automaker Honda, which on Tuesday upgraded its annual forecasts, jumped 6.47 percent to 3,241 yen.
Sony surged 4.74 percent to 6,140 yen after it reported its net profit nearly doubled to hit a record high in the six months to September.
However, game giant Nintendo ended down 0.26 percent at 35,160 yen after it reported net profit for the six months to September of 64.6 billion yen, while maintaining its annual forecast of 165 billion yen profit.
Nippon Steel and Sumitomo Metal ended up 1.07 percent at 2,087 yen, shrugging off a ruling from South Korea’s top court ordering the company to pay compensation over forced wartime labour. Japan has denounced the ruling.
Mitsubishi UFJ Financial Group (MUFG) jumped 3.16 percent to 684.8 yen after the Commonwealth Bank of Australia announced the sale of its global wealth management business to Mitsubishi UFJ Trust and Banking, an MUFG unit.
Japan Airlines rose 2.40 percent to 4,017 yen. After the market closed, the company said its net profit between April and September dropped 5.9 percent to 73.4 billion yen as fuel prices surged.
[source_without_link]AFP[/source_without_link]