May 9 (Bloomberg) -- Japanese stocks rose, with the Topix index paring its weekly decline, as earnings from Ebara Corp. to Mitsubishi Heavy Industries Ltd. buoyed investor sentiment.
Ebara jumped the most on the Nikkei 225 Stock Average as the maker of pumps forecast net income growth. Mitsubishi Heavy soared 6.8 percent after the heavy machinery maker forecast profit that beat estimates. Canon Inc. rose 1.9 percent as the camera maker said it would buy back shares. Rakuten Inc., an online retailer, slumped 5.5 percent after quarterly operating profit missed estimates and U.S. Internet stocks declined.
The Topix index added 0.5 percent to 1,165.51 at the close in Tokyo, reversing a slide of as much as 0.5 percent. The measure lost 1.4 percent this week in trading shortened by two holidays. The Nikkei 225 gained 0.3 percent to 14,199.59, a second day of gains that recouped some of its 2.9 percent slump on May 7.
“Shares have rebounded after the Nikkei fell toward 14,000, which I see as a resistance level,” said Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments Ltd. “Another driver for the market is earnings. Yesterday’s results weren’t super, but many of them were relatively good.”
Of the companies on the Topix that have posted quarterly results since April 1 and for which Bloomberg had estimates, 55 percent beat earnings expectations as of yesterday, according to data compiled by Bloomberg.
Mitsubishi Heavy was the biggest boost to the Topix, jumping 6.8 percent to 566 yen after targeting a net income of 130 billion yen for the current fiscal year, compared with the 127.4 billion yen that analysts estimated. Ebara soared 7.5 percent to 644 yen after saying full-year net income will grow 5.4 percent to 20 billion yen ($197 million).
The Topix has fallen 11 percent this year, the most among major developed markets tracked by Bloomberg, as investors weighed whether Prime Minister Shinzo Abe and the central bank will foster a sustained economic recovery.
The yen was little changed at 101.69 per dollar after rising 0.2 percent yesterday.
Futures on the Standard & Poor’s 500 Index were little changed today after the equity measure declined 0.1 percent yesterday as technology shares erased gains to slide for a third straight day.
Canon rose 1.9 percent to 3,252 yen. The camera maker plans to buy back as many as 17 million shares between today and July 29, it said.
Mitsumi Electric Co. soared 5.8 percent to 691 yen after the maker of electronic parts reported preliminary net income of 3.2 billion yen, almost triple the 1.17 billion yen that analysts estimated.
Among shares that declined, Rakuten slumped 5.5 percent to 1,228 yen. Quarterly operating profit fell 1.5 percent to 22.6 billion yen from a year earlier, below the 25.3 billion yen that analysts estimated.
The Topix traded at 1.1 times book value, compared with 2.6 for the S&P 500 and 1.9 for the Stoxx Europe 600 Index yesterday.
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