Japan’s Nikkei rises as Uniqlo owner jumps on earnings, automakers gain

TOKYO: Japan’s Nikkei share average gained on Friday, powered by a surge in megacap Uniqlo store operator Fast Retailing on the back of strong earnings.

Automakers also outperformed as a weakening yen bolstered the value of offshore revenue.

The Nikkei climbed 0.7% to 51,463.44 by 0135 GMT.

Heavily weighted Fast Retailing single-handedly contributed 488 points to that advance with an 8.6% rally, exceeding the index’s total 325-point gain.

Toyota added another 11 points with a 2% jump.

The broader Topix rose 0.3% to 3,495.92.

For the week, the Nikkei is up about 2.5%, and the Topix has gained 2.8%.

Earnings were the main driver for the Japanese market, even with the crucial US monthly non-farm payrolls report due later in the global day that could reverberate across all geographies and asset classes.

“What the US jobs data says about the outlook for monetary policy will definitely be a focus for investors,” said Wataru Akiyama, an equities strategist at Nomura Securities.

Japan’s earnings season doesn’t pick up until later this month, but Yaskawa Electric’s results due later on Friday will be watched closely as the factory robot maker is a bellwether for the domestic manufacturing sector, Akiyama said.

Earnings this week have mainly been from retailers, and disappointing results from Aeon despite record sales and operating profit, saw the stock plunge 8.3% to be the Nikkei’s worst performer.

Mazda, the Japanese automaker that depends heavily on US sales, jumped 3.3%.

Honda advanced 2.8% and Nissan gained 2.2%.

Of the Nikkei’s 225 components, 145 gained, 79 fell and one traded flat.