Japan’s Nikkei Rebounds on Earnings Boost, Nintendo Extends Rally

Reuters

12:33 JST, November 9, 2023

TOKYO (Reuters) – Japan’s Nikkei share average rose on Thursday rebounding after two sessions of losses, as strong earnings helped propel energy and consumer-product shares.

The Nikkei added 0.9% to 32,454.92 as of the midday break, making up ground following a 1.66% slide over the previous two sessions. Of the index’s 225 components, 159 rose versus 65 that fell, with one flat.

The broader Topix added 0.46%.

Cosmo Energy, while not a Nikkei member, pulled other oil shares higher as it jumped 9.39% after revising up its profit forecast. Idemitsu Kosan gained 2.21% and Eneos added 1.23%.

Watch and calculator maker Casio was the Nikkei’s biggest percentage gainer, jumping 6.23%, followed by cosmetics maker Kao, which rallied 5.21%, both following positive financial results.

Nintendo gained 4.43%, adding to a 6.09% surge the previous day, on the back of its own robust earnings projections and strong game sales.

“The bottom looks firm for the Nikkei, and the momentum for declines is fading,” said Kazuo Kamitani, a strategist at Nomura Securities.

The benchmark’s next test is whether it can retake the Oct. 12 closing high at 32,494.66, he added.

“Once the market is convinced of overall robust financial results, it should top that level,” Kamitani said.

Results from Sony, Nissan and startup investor SoftBank Group are all due later in the day. The 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 diving 11.48% and consumer electronics maker Sharp sliding 9.92%.

Online staffing services provide Recruit Holdings rounded out the bottom three, with a 5.46% slide.