Yahoo Finance Tokyo stocks close higher, extending global gains
Tokyo stocks ended firmly higher Wednesday, extending a rally on Wall Street and in Europe, while Sony advanced more than six percent after investors shrugged off a weak profit forecast.
Sony said Tuesday that a pair of deadly quakes in Japan last month would dent its financial results, with the company warning that net profit would decline by nearly 46 percent this fiscal year from the previous year.
But on Wednesday investors focused on the electronic giant's long-term prospects in image sensors and entertainment over the lowered profit forecast, pushing its shares up 6.46 percent to 3,072 yen.
"Even if there are effects from the earthquake, we've been able to confirm that (Sony) is able to secure a certain level of profit," Chihiro Ohta, a senior strategist at SMBC Nikko Securities, told Bloomberg News.
By the close, Tokyo's benchmark Nikkei 225 index soared 1.57 percent, or 258.59 points, to close at 16,757.35, while the broader Topix index of all first-section shares climbed 1.23 percent, or 16.38 points, to 1,342.88.
On currency markets, the dollar held gains against the yen as expectations of a US Federal Reserve interest rate hike as early as next month have increased.
"We could see a rate hike in either June or July," said SMBC's Ohta.
The greenback ticked up to 110.06 yen from 109.99 yen Tuesday in New York, trading above the psychologically important 110-handle.
Japanese exporters were lifted by the weaker currency, which is a plus for their profitability.
Toyota shares surged 2.32 percent to 5,555 yen, following news of a $400 million investment in a factory in Malaysia and an overnight announcement about a partnership with ridesharing titan Uber.
Toyota and Uber said they had entered into a memorandum of understanding to explore collaboration, starting with trials in countries where ridesharing is expanding.
On Wednesday Toyota also said it will build a vehicle plant in Malaysia with an annual production capacity of 50,000 passenger cars, costing around 49 billion yen ($445 million). The plant is scheduled to begin operation in early 2019.
Other automakers also jumped, with Nissan tacking on 1.48 percent to 1,058.5 yen and Honda 2.39 percent higher at 2,991.5 yen.
A surge in crude prices boosted petroleum-linked stocks, with energy explorer Inpex gaining 1.08 percent to 831.6 yen and refiner JX Holdings up 0.40 percent at 424.2 yen.
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