Tokyo stocks up 0.79% by break
Tokyo stocks rose 0.79 percent Wednesday morning, on a weak yen and upbeat earnings reports, but market heavyweight Fast Retailing tumbled owing to weak July sales at its Uniqlo clothing chain in Japan.
The Nikkei 225 index at the Tokyo Stock Exchange, which slipped 0.15 percent at the open, added 162.30 points to 20,682.66 by the break, while the Topix index of all first-section shares was up 0.78 percent, or 12.97 points, to 1,672.80.
"The focus on individual stock moves will persist," SMBC Nikko Securities manager Hiroichi Nishi told Bloomberg News.
"The domestic environment is good overall. The economy is on its way to a recovery, and corporate earnings are generally doing well. In terms of demand, individual investors are looking to buy on dips."
Among Japanese firms that have already reported in the latest earnings season, 61 percent exceeded profit expectations, an improvement from the 48 percent that beat forecasts in the previous quarter, according to data compiled by Bloomberg.
Honda shares rose 1.75 percent to 4,398 yen, while Fast Retailing dropped 4.04 percent to 58,900 yen as its Japanese Uniqlo stores reported disappointing monthly sales.
Toyota fell 2.07 percent to 7,953 yen. Investors were disappointed that the automaker did not lift its full-year profit forecast after reporting a 10 percent rise in quarterly earnings Thursday.
On currency markets, the dollar edged up to 124.45 yen against 124.36 in New York.
A weaker yen is positive for Japanese exporters as it makes them more competitive abroad and inflates the value of repatriated profits.
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