Nikkei rises thanks to strong earnings, Honda shares boost ‎Topix

Japan’s Nikkei index closed higher on Thursday, clawing back early losses, as strong corporate earnings counteracted investor concerns ahead of US consumer price inflation data.

According to Reuters, the Nikkei index rose 0.84% to close at 32,473.65 points, after opening 0.58% lower following losses on Wall Street overnight. The broader Topix index rose 0.92 percent to 2,303.51 points.

“The market was supported by stocks that reported strong earnings,” said Shuichi Arisawa, general manager of investment research at Awaikosmo Securities. And the corporate earnings season in the first quarter is generally very strong.”

US stocks closed lower on Wednesday, a day before the release of the Consumer Price Index inflation report, which could influence the Federal Reserve’s interest rate decisions.

“US inflation data will be released at a time when long-term Treasury yields in the United States and Japan are volatile, which has made investors worried,” Arisawa added.

Japanese markets will be closed on Friday due to a holiday

Honda Motor rose 5.87 percent, giving the biggest boost to the Topix index, after the automaker reported a 78 percent jump in quarterly profits.

The share of the competing Toyota Motor Company increased 1.4%

Inpex shares jumped 16.62 percent after the oil and gas exploration company raised its full-year net profit forecast by 7 percent and announced measures to boost company value and shareholder returns.

The mining sector index rose 14.93%, becoming the best performer among the 33 industry sub-indices on the Tokyo Stock Exchange.

But Sony Group shares lost 3.23 percent after the entertainment group reported a 31 percent drop in operating profit for the April-June quarter due to poor performance in its film and financial divisions.

Olympus shares plunged 12.02% after the medical equipment maker reported a nearly 50% drop in its operating profit for the first quarter.