By Rocky Swift
TOKYO, April 27 (Reuters) - Most Japanese stocks rose on
Thursday, led by manufacturers on earnings optimism while
banking contagion concerns weighed down financials.
The Nikkei share index rose 0.15% to close at
28,457.68, recovering from an early 0.6% drop. The broader Topix added 0.43% to 2,032.51.
Heavy equipment maker Hitachi Construction Machinery Co jumped 3.67% after saying full-year operating profit
surged 45%. That contrasted with brokerage Nomura Holdings Inc , which sank 7.24% after posting a plunge in quarterly
profit.
Chip-testing equipment maker Advantest Corp. sank
more than 9.21%, its steepest drop in almost three years, after
its earnings forecast missed market expectations.
"Hitachi Construction had punchy guidance," said Mio Kato,
founder of LightStream Research, who publishes on the Smartkarma
platform. "I still think the theme for the year is a very weak
tech space and an increasingly strong industrials space. So far,
earnings are leaning in that direction in Japan."
Nomura joined major Wall Street firms in reporting a
business slump after the failure of two U.S. banks last month.
U.S. stocks were mixed overnight, but the tech-heavy Nasdaq
gauge gained following upbeat earnings from Microsoft Corp and
Google operator Alphabet Inc. Investors are awaiting U.S. inflation data on Friday ahead
of the Federal Reserve policy decision next week, while Japan's
central bank begins a two-day meeting on Thursday under new
governor Kazuo Ueda.
The Nikkei share average had 152 gainers against 69 that
declined.
Canon Inc surged 4.16% to its highest level since
early December after the imaging giant lifted its profit
forecast. Sony Corp jumped 3.54% ahead of results on
Friday.
Toyota supplier Denso Corp rose 3.44%, reversing an
earlier skid, after a company executive said a chip shortage was
likely to ease starting this summer.
Beverage maker Kirin Holdings slid 1.66% after
saying it plans to acquire Australian natural health firm
Blackmores Ltd for about 169.2 billion yen($1.27 billion).
(Reporting by Rocky Swift; Editing by Rashmi Aich and Janane
Venkatraman)
