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Japan’s Nikkei Rebounds Sharply From Two-Day Loss on Earnings Boost

Yomiuri Shimbun file photo
Tokyo Stock Exchange

TOKYO(Reuters) – Japan’s Nikkei share average made strong gains on Thursday, snapping a two-day loss, as robust earnings helped propel energy and consumer-product shares.

The Nikkei 225 closed up 1.49% at 32,646.46, recovering most of its 1.66% slide over the previous two sessions. Of the index’s 225 components, 169 rose versus 54 that fell, with two flat.

The broader Topix added 1.26%.

Nomura Securities strategist Kazuo Kamitani said the Nikkei’s close above the Oct. 12 high of 32,494.66 sends a bullish signal for investors.

The bottom looks firm for the Nikkei and the momentum for declines is fading, Kamitani said.

Cosmo Energy 5021.T, while not a Nikkei member, pulled other oil shares higher as it jumped nearly 9% after revising up its profit forecast. Idemitsu Kosan 5019.T gained 3.11% and Eneos 5020.T added 1.67%.

Watch and calculator maker Casio 6952.T was the Nikkei’s biggest percentage gainer, jumping almost 7% following positive financial results.

Nintendo 7974.T gained 5.57%, adding to a 6.09% surge the previous day, on the back of its own robust earnings projections and strong game sales.

Cosmetics maker Kao 4452.T was no. 3, rallying close to 5% after releasing earnings.

Kao’s robust profit rebound boosts our confidence in its ability to restore margins and profitability, Morningstar analyst Jeanie Chen wrote in a note.

Japan’s earnings season peaks on Friday, before largely coming to an end on Tuesday.

Financial results produced some outsized losers on the Nikkei too, with electronics component manufacturer Fujikura 5803.T and consumer electronics maker Sharp 6753.T each diving more than 10%.