TOKYO: Japanese stocks rose on Tuesday, as electric motor maker Nidec Corp kickstarted the earnings season with strong results and raising hopes for other companies that might stand to benefit from a weakened yen.
The Nikkei share average opened up 0.51% and closed 1.02% higher, while the broader Topix index gained 1.06%.
Nidec was the Nikkei’s best performer, jumping 4.97%, after reporting record second-quarter operating profits, helped in part by the yen’s decline.
The Japanese currency has fallen more than 20% against the dollar this year, including a 6% drop over the July-September quarter. “Nidec’s earnings were welcomed by the market,” Nomura Securities equities strategist Kazuo Kamitani told reporters.
“With the effect of the weak yen at record highs and the solid growth in electronic vehicle sales, we can’t say this will have a big influence on the entire market, but it should help firm expectations for upcoming earnings reports.”
Shares in Nidec are down more than 38% this year, compared to the Nikkei’s 5.36% fall.
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The company has been embroiled in management turmoil this year, with its former chief executive officer leaving the company last month after receiving a demotion in April. The Nikkei was further supported by major index contributor SoftBank Group Corp, which rose 3.77%.
Topix-listed Tsuburaya Fields Holdings, a pachinko machine maker, soared 16.61% after releasing earnings and raising its full-year operating profit forecast to 6 billion yen ($40.30 million), a 50% increase.
Chugai Pharmaceutical Co Ltd was the Nikkei’s biggest decliner, falling 3.5% despite reporting a 35.7% year-on-year increase in operating profit for the nine months ended Sept. 30.
Each of the Nikkei’s 11 sectors advanced, with energy and technology leading gains. Of the index’s 225 constituents, 201 rose while 20 fell and four traded flat.
The Topix index’s 33 industrial sectors also all gained.
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