Most Japan Stocks Gain as Weaker Yen Helps Electronics Makers

  • Trading volume on the Topix index low before U.K. election
  • Hard to ‘go for stocks’ before Comey’s testimony: MUFJ-MS

Most shares on the Topix index rose as the yen weakened after gaining beyond 110 to the dollar on Tuesday.

Banks and electronics makers provided the biggest boosts to the stock gauge, while builders and retailers were the heaviest drags. The yen slipped even as caution increased before the U.K. general election and testimony by former U.S. Federal Bureau of Investigation head James Comey on Thursday. The Topix’s trading volume was 9.3 percent below the 30-day average.

“It’s hard to go for stocks before Comey’s testimony is done with,” said Seiichi Miura, a strategist at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo. “With equities trading within range of fresh highs, there’s a strong inclination among investors to offload their holdings for now.”

Summary

  • Topix little changed at 1,597.09 at close
  • Nikkei 225 steady at 19,984.62
  • Yen -0.1% at 109.47 per dollar after gaining 0.9% Tuesday
  • Ain Holdings -10%; forecasts operating profit of 16.6b yen for current fiscal year vs analyst est. 19.2b yen
  • Anritsu +7.7%; Nikkei newspaper reports next-generation 5G communications networks will be ready for use by 2023 in Japan
  • Daiwa House -2.4%; cut to neutral from outperform at Credit Suisse
  • Hazama Ando -12%; co. falsified receipts submitted to local authorities for costs related to the cleanup of the Fukushima Dai-Ichi nuclear plant, Sankei reported; spokesman Tadashi Kiryu says that the company is investigating the contents of the report
  • Japan Display +9.7%; seeking possible capital tie-ups and would realign domestic factories as it copes with Apple’s switch to OLED panels from LCD for some upcoming iPhones, Nikkei reports
  • Mitsui High-Tec +23%; lifts outlook for half-year net income by nearly three-fold to 1.4b yen from 500m yen
  • Sanwa Holdings +1.6% to highest level since 1991 as Nomura upgrades to buy on domestic growth
  • Sony -1%; pared loss after Oasis Management’s Seth Fischer recommended Sony shares at Sohn conference in Hong Kong

For more on Japan markets:
ASIA FX OVERNIGHT: JPY Rises as Risk Appetite Is Curbed
Ginza Land Prices Passing Bubble-Era Highs Flashes Warning Sign
What a Drag for the Dollar: Link With Bonds Means Losses Deepen
Here’s How Hedge Funds’ Top Picks at 2016 Sohn Hong Kong Fared

— With assistance by Min Jeong Lee

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