LOS ANGELES: Japanese stocks sharply increased in early trade on Wednesday, and while a good lead from U.S. stocks and a weaker yen (dollar USDJPY, +0.12% buying ¥117.65 vs. ¥117.33 at previous stock close) helped support the market, earnings results were the main story.
The Nikkei Stock Average NIK, +1.91% rose 1.4%, and the Topix added 1.3%, with Japan’s largest lender Mitsubishi UFJ Financial Group Inc. 8306, +5.05% MTU, +2.04% up 2.9% after posting a strong profit gain on the back of a softer yen and good returns on some of its investments.
Capcom Co. 9697, +6.89% surged 7.3% after reporting lower sales but a roughly 10% gain in net profit, while shares of Mitsubishi Electric Corp. 6503, +0.64% MIELF, +2.06% improved by 2.3% after its earnings report.
However, stock in Sharp Corp. 6753, -4.90% SHCAF, +4.28% dropped 3.3%, cutting into its more-than-5% rally the previous day, as the company posted a swing to a net loss and said it also expected to be in the red for the full fiscal year. Likewise, Panasonic Corp. 6752, -2.10% PCRFF, -0.52% fell 0.7% as quarterly profit came in below the year-earlier level. After the market close Wednesday, both Sony Corp. 6758, +3.02% SNE, +1.50% and Toyota Motor Corp. 7203, +1.76% TM, +0.04% were due to report, with Sony shares up 1.5% in the early going, while Toyota rose 1.2%. Beyond earnings, Toshiba Corp. 6502, +1.80% TOSYY, +0.54% rose 1.5% as a Nikkei news report said the company was completely withdrawing from the television-production business, while stock in Japan Airlines Co. 9201, -0.94% JAPSY, -5.38% and ANA Holdings Inc. 9202, +0.67% ALNPF, +1.36% fell 1.9% and 0.9%, respectively, as energy prices rebounded overnight.
