The FINANCIAL -- Tokyo stocks rose on October 26, with the key Nikkei index at a one-month closing high, as a weaker yen lifted exporters while investors awaited Japanese companies' interim earnings reports this week.
The 225-issue Nikkei Stock Average erased early losses to gain 79.63 points, or 0.77 percent, from Friday to 10,362.62, its highest close since Sept. 24. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 8.69 points, or 0.96 percent, to 910.72.
"Gainers were led by auto, land transport and machinery issues. Major decliners included the pulp and paper, iron and steel, and mining sectors," Nikkei,com informs.
The market's mood was lifted by buying in exporters such as Honda Motor as the U.S. dollar hit a six-week high around the 92 yen line, spurring some buying also in financial and defensive issues, brokers said.
But as buying ran its course amid a lack of fresh trading incentives, gains were trimmed in the afternoon while resource shares hurt by lower oil and other commodity prices continued to weigh on the market.
''With expectations for upward revisions in the (April to September) corporate earnings already priced in, the market is now focusing on the full-year projections'' as the reporting season gets into full swing this week, said Hiroichi Nishi, equity manager at Nikko Cordial Securities Inc.
Noting investors' reluctance to take aggressive positions when uncertainties remain over Japan's economic prospects, Nishi added the Japanese parliament's extraordinary session, which began on October 26 afternoon, will also be closely monitored as the market seeks details on the new government's growth strategy.
On the First Section, advancing issues outnumbered declining ones 1,201 to 382, with 106 others remaining unchanged.
Honda Motor, whose assumed dollar exchange rate for this business year is set at 91 yen, gained 95 yen, or over 3 percent, to 2,900 yen. Nissan Motor was up almost 3 percent.
Kawasaki Heavy Industries climbed 10 yen, or over 4 percent, to 240 yen on news reports a Chinese company with a licensing agreement to use its technology has won an order for high-speed railcars.
Battery maker GS Yuasa, the day's value leader, gained 31 yen, or almost 4 percent, to 841 yen. Volume leader Mizuho Financial Group lost 1 yen, or about half a percent, to 172 yen, while Mitsubishi UFJ Financial Group rose over 2 percent.
Bucking the trend, Japan Petroleum Exploration lost 50 yen, or about 1 percent, to 4,870 yen. Oji Paper fell 7 yen, or almost 2 percent, to 406 yen.
Steelmaker JFE Holdings shed 70 yen, or over 2 percent, to 3,130 yen after keeping its full-year outlook unchanged in Monday's interim earnings report, disappointing some investors who had hoped for an improved forecast, brokers said.
Trading was thin, with volume on the main section coming to 1,730.35 million shares, down from Friday's 1,991.38 million.
The TSE's Second Section index was up 3.08 points, or 0.14 percent, to 2,195.75 on a volume of 23.24 million shares. On the Osaka Securities Exchange, the near-term December Nikkei 225 index futures contract was up 70 points to 10,360.
Related Stories
