TOKYO: Japan’s Nikkei share average traded higher on Friday, snapping a seven-day losing streak, as investors scooped up stocks that appeared undervalued after the long decline.
The Nikkei inched up 0.5% by the midday break, recovering from a three-month low reached in the previous session. The index is set to fall 5% for the week.
The broader Topix rose 0.58% to 2,725.55 and is poised to fall 4.72% for the week. “The market fell too much so that investors bought back stocks, but still heavyweight chip-related stocks were weak, which capped the gains,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
“But the bright side was that the market bought companies that reported a positive outlook. With the earnings season continuing after next week, a strong corporate outlook is expected to support the Nikkei.”
Hino Motors surged 11.76% to become the top percentage gainer on the Nikkei after the truck maker narrowed its quarterly net loss. Canon jumped 8.29% after the camera maker reported on Thursday its annual operating profit rose to 465 billion yen ($3.02 billion), up 24% from a year earlier.
Fujitsu jumped 10.51% after the computer maker said on Thursday its quarterly net profit quadrupled to 16.8 billion yen. However, Nissan Motor extended losses, falling 2.8%, after falling 7% on Thursday as the automaker slashed its annual outlook. Renesas Electronics fell 5.55% to become the biggest percentage loser on the Nikkei. The chip-maker tanked 13.6% on Thursday after reporting a 29% decline in net profit for six months to June.
Heavyweight chip-related stocks fell, with Tokyo Electron and Advantest falling 2.29% and 1.65%, respectively. Of the 225 Nikkei components, 168 stocks rose and 57 fell.
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