Toyota rebounds as Nikkei 225 ends higher

Toyota sank in early trade a day after reporting its first drop in annual net profit and said it expects a similar fall in the next fiscal year owing to expensive US customer incentives and a pick-up in the yen.

Toyota rebounds as Nikkei 225 ends higher

World Bulletin / News Desk

Tokyo stocks rose Thursday on a weaker yen, with Toyota rebounding as news of a share buyback offset warnings from the auto giant that it is on track for a second straight year of falling profits. 

But the firm rebounded in the afternoon as traders digested the announcement, also in the earnings report, that it will buy back as much $2.2 billion of its own shares, which tightens their availability. Toyota ended 0.69 percent higher at 6,123 yen.

The bellwether Nikkei 225 rose 0.31 percent, or 61.46 points, to 19,961.55 -- close to the key 20,000 level it last crossed in late 2015. 

The broader Topix index of all first-section issues gained 0.11 percent, or 1.67 points, to 1,586.86.

Exporters were lifted as the dollar held above 114 yen, having broken above the level on Wednesday for the first time since March. A lower yen boosts exporters' profitability.

"The yen is weakening as investors once again price in the strength of the US economy, and it's a tailwind for Japanese shares," said Juichi Wako, a senior strategist at Nomura Holdings.

Hundreds of companies are reporting earnings this week.

"Corporate earnings are respectable. Sales grew due to a recovery in the global economy last year, and few companies are cutting forecasts for this year even when they have a conservative outlook on the yen," Wako told Bloomberg News.

Ahead of their earnings releases, Nissan closed flat at 1,075 yen while Panasonic rose 0.32 percent to 1,377.5 yen. 

Mobile giant SoftBank, a market heavyweight, rose 2.01 percent to 8,875 yen.

On Wednesday it reported that its full-year net profit tripled largely thanks to one-off gains from the sale of a stake in Chinese e-commerce titan Alibaba.

Last Mod: 11 Mayıs 2017, 11:19
Add Comment