off-the-wire

Japan's Nikkei rises on corporate earnings boost, weak yen

Kitco Media
By Reuters
Published:
Updated:
Reuters
TOKYO, May 15 (Reuters) - Japan's Nikkei index rose to its highest in 1-1/2 years on Monday, as investors sought stocks with robust earnings, while the yen's weakness also boosted sentiment. The Nikkei share average rose 0.4% to 29,505.80 by the midday break, crossing 25,500 for the first time since November 2021. The broader Topix rose 0.49% to 2,106.74. "Investors scooped up individual stocks that reported positive earnings, which boosted the overall market," said Maki Sawada, a strategist at Nomura Securities.


The U.S. dollar kept its strength against a basket of major currencies, after posting the biggest weekly gain last week. A softer yen tends to help exporter shares as it increases the value of overseas profits in yen terms when companies repatriate them to Japan.


Among individual shares, Shiseido jumped 4.51% after the cosmetic maker beat consensus by posting a 97% jump in its net profit for three months through March. Beer maker Asahi Group Holdings rose 2.91% after its quarterly net profit grew more than four times. Phone company NTT advanced 3.295 after announcing a stock split.


SBI Shinsei Bank surged 8.47% after Japanese online financial conglomerate SBI Holdings Inc said it would take midsize lender private. SBI Holdings rose 2.41%. Uniqlo brand owner Fast Retailing rose 0.7% to provide the biggest boost to the Nikkei. Air-conditioning maker Daikin Industries Bucking the trend, medical equipment maker Olympus fell 7.65% to weigh on the Nikkei the most. Chip-making equipment maker Tokyo Electron lost 1.46%.
(Reporting by Junko Fujita; editing by Uttaresh Venkateshwaran)

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