Japan Stocks Gain as Rising Profits Overshadow Europe Concern

Japanese stocks gained as better earnings outlook among Japanese companies overshadowed concerns about the Europe’s debt crisis and the weaker euro.

Sumitomo Heavy Industries Ltd., a maker of heavy electric machinery, surged 12 percent after forecasting profit will rise. Denki Kagaku Kogyo K.K., a chemical products maker, soared 8 percent after saying it expects higher profit this fiscal year. Toyota Motor Corp., the world’s biggest carmaker, led gains in carmakers after the Nikkei newspaper reported its output may return to normal earlier than expected. Nintendo Co., a video-game console maker that gets a third of its revenue from Europe, retreated 1.6 percent.