Shares of JFE Holdings Inc jumped 14.5%, the steepest gain in 14 years, after Japan's second-biggest steelmaker forecast a profit surge as auto demand recovers.
Kawasaki Kisen Kaisha Ltd leapt 9.3% on estimate-beating quarterly numbers and after the shipper raised its dividend forecast. The Nikkei climbed 1.01% to 29,242.82, the highest closing level since January 2022. The broader Topix rose 1.27% to 2,097.55, highest since September 2021. "The results were good, and much better than the market expected," Nomura strategist Kazuo Kamitani said of JFE's results, which were released after the market closed on Monday. "The mainstay logistics segment, particularly related to autos, is expected to continue recovering along with improvements in the supply of semiconductors and car parts," he added. JFE rivals Nippon Steel Corp and Kobe Steel Ltd soared more than 5%. Steelmakers and wholesale trading companies were the top performers among the Tokyo Stock Exchange's 33 industry sub-indexes. Air transport was the only index to lose ground, dropping 0.54%. Results from heavyweights Toyota Motor Corp on Wednesday and SoftBank Group Corp on Thursday will be the next major cues for whether the positive earnings momentum will continue, said Daiwa Securities strategist Kenji Abe. Office printer maker Ricoh Co bucked the positive earnings trend, releasing results during trading that included a forecast decline in profit this fiscal year. Its shares plunged 6.8%, leading Nikkei decliners. Sailor Pen Co surged 8.23% on media reports that its high-end fountain pens will be given to officials gathering at a Group of Seven summit in Hiroshima in the coming days.
(Reporting by Rocky Swift; Editing by Sherry Jacob-Phillips and Uttaresh Venkateshwaran)
