Japanese Stocks Rise as Positive Earnings Offset Toyota's Dropby and
Toyota slumps 1.4 percent after forecasting profit decline
Meiji surged after operating profit beat analyst estimates
Japanese shares rose after the yen weakened and as positive earnings from Meiji Holdings Co. to DeNA Co. offset disappointing results from companies including Toyota Motor Corp. and Bridgestone Corp.
The Topix index gained 0.2 percent to 1,337.27 at the close of trading in Tokyo, after falling as much as 1.3 percent. The Nikkei 225 Stock Average advanced 0.4 percent to 16,646.34. The yen fell 0.5 percent to 108.92 after rising 0.8 percent on Wednesday. Japan’s earnings peak this week, with more than 260 Topix companies reporting Thursday. Milk producer Meiji Holdings Co. jumped 11 percent, the second-biggest boost to the Topix, after posting operating profit that beat forecasts.
“Investors are being cheered on by some of the earnings that came out in the afternoon,” said Hiroaki Hiwada, a Tokyo-based strategist at Toyo Securities Co. “The yen trading close to 109 per dollar is a big help as well.”
Meiji surged the most since August 2015 after its sales, operating profit and net income for the year ended March beat analyst estimates. Gamemaker DeNA surged 12 percent, the most in more than a year, after reporting earnings.
Toyota slumped 1.4 percent after saying profit will probably decline for the first time in five years. The company forecast a 35 percent drop in net income to 1.5 trillion yen ($13.8 billion) this fiscal year, worse than analysts’ estimates for a 2.19 trillion yen profit. It was the largest drag on the Topix.
Bridgestone sank 5.8 percent after posting a 21 percent drop in net income in the first quarter. Casio Computer Co. plunged 12 percent after its operating profit forecast of 48 billion yen missed analyst estimates, and its rating was cut to neutral from buy at Nomura Holdings Inc.
Nissan, Mitsubishi Motors
Nissan Motor Co. lost 1.4 percent, while Mitsubishi Motors Corp. surged 16 percent, after the companies said they’re in talks, including for a possible capital tie-up, amid a fuel-economy ratings scandal that has battered Mitsubishi Motors. The carmakers confirmed discussions in separate statements to the Tokyo Stock Exchange, saying no decision has been made. Nissan and Mitsubishi Motors said they’ll discuss the matter at scheduled board meetings Thursday.