TOKYO: Japanese stocks rose, with the Topix index closing at the highest level since July 2007, as positive earning results outweighed weaker-than-expected Chinese economic data.
Instant noodle-maker Nissin Foods Holdings Co. jumped 5.9 percent after profit surged. Textile makers led gains after a brokerage upgraded its outlook on Toray Industries Inc. Olympus Corp. added 2.4 percent after being tapped to join the JPX-Nikkei Index 400. Mabuchi Motor Co. sank 11 percent to lead declines among firms that rely on China for sales.
The Topix rose 0.7 percent to 1,691.29 at the close in Tokyo, reversing a loss of 0.5 percent. The Nikkei 225 Stock Average added 0.4 percent to 20,808.69. China at the weekend reported a bigger-than-expected slide in exports and the steepest slump in producer prices since 2009.
“Earnings at companies that rely on domestic demand or those in defensive sectors are showing resilience,” said Koji Toda, chief fund manager at Resona Bank Ltd. in Tokyo. “Money is flowing in to consumpton-related shares, where earnings are being bolstered by tourist spending.”
More than 85 percent of companies in the Topix have announced earnings this quarter. Of the ones for which estimates are available, 63 percent have exceeded profit expectations, an improvement from the 48 percent that beat forecasts last quarter, according to data compiled by Bloomberg.
