Japan’s Topix Gains as Investors Weigh Earnings, Greece

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Japan’s Topix index gained, reversing losses in the final 15 minutes of trading, as investors weighed corporate earnings and prospects that Greece’s rejection of a bailout may lead to fresh turmoil in the euro zone.

Nissan Motor Co. jumped 3.8 percent after raising its annual earnings forecast. Kajima Corp. soared 6.4 percent after reporting a surge in profit. Air-conditioner maker Daikin Industries Ltd. dropped 5.5 percent after Credit Suisse Group AG said operating profit likely missed market expectations. Tokyo Electron Ltd. sank 3.6 percent after a report the Tokyo-based company and Applied Materials Inc. withdrew from a merger review by China’s Ministry of Commerce.

The Topix index rose 0.2 percent to 1,427.72 at the close of trading in Tokyo, erasing declines of as much as 0.4 percent. The Nikkei 225 Stock Average slipped 0.3 percent to 17,652.68. The yen rose 0.1 percent to 118.54 per dollar after strengthening 0.4 percent Monday as demand grew for the haven currency as Greek officials seek short-term financing to head off a funding crisis.

“There’s increasing concern that corporate earnings won’t be as good as hoped,” said Koichi Kurose, who oversees about 6 trillion yen ($51 billion) as Tokyo-based chief market strategist at Resona Bank Ltd. “But macro data should start to get better, and while it isn’t being priced into stocks yet, there’s the expectation that earnings will improve. So it’s not like stocks are going to head down from here either.”

U.S. Futures

Futures on the Standard & Poor’s 500 Index gained 0.1 percent after the underlying gauge retreated 0.4 percent on Monday in New York. On Friday, the index reversed intraday gains that put it within 1 percent of records reached in December.

Greece will seek about 10 billion euros ($11.3 billion) in short-term financing to buy time to push its creditors to ease austerity demands, according to a government official who asked not to be named as the negotiations are confidential.

“There’s nothing particularly surprising about the details of the negotiations between Greece and the EU, but the conflict between one side asking for a debt reduction and the other side seeking full repayment are weighing heavily on sentiment,” Ryuta Otsuka, a strategist at Toyo Securities Co. in Tokyo, said by phone.

Euro-area finance ministers are set to hold an emergency meeting Wednesday in Brussels after Greek Prime Minister Alexis Tsipras reaffirmed his rejection of the international bailout program in an address to parliament on Sunday.

Earnings per share for companies on the Topix are expected to grow 15 percent over the next 12 months, according to data compiled by Bloomberg. Of the 352 companies that have reported earning this quarter, 67 percent beat earnings estimates, Bloomberg data show.

Kajima, Nissan

Kajima gained 6.4 percent to 484 yen, the most on the Nikkei 225 and its biggest jump since September 2013. The construction company said nine-month net income surged 69 percent to 23.5 billion yen.

Nissan climbed 3.8 percent to 1,104.5 yen after the carmaker raised its full-year profit forecast by 3.7 percent as the weaker yen and growth in U.S. deliveries boosted export earnings, countering a slowdown in Japan.

Daikin Industries sank 5.5 percent to 7,676 yen, the biggest drop on the Nikkei 225. The company’s 35.9 billion yen third-quarter operating profit likely missed the market consensus for 38 billion to 40 billion yen in profit, Credit Suisse said.

Tokyo Electron dropped 3.6 percent to 8,234 yen. The company withdrew from a review of its merger with Applied Materials being by China’s Ministry of Commerce, Mlex Market Intelligence reported, citing Shang Ming, director-general of Mofcom’s anti-monopoly bureau.