TOKYO, Oct. 30, 2009 (Xinhua News Agency) -- Japan's 225-issue Nikkei Stock Average rose 143.64 points to 10,034.74 Friday, reclaiming ground lost on Thursday which saw the key Nikkei index sink to a three- week low of below 10,000 -- the lowest close in three weeks.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 1.4 percent to 894.67, ahead of key earnings data from big Japanese players including Panasonic Corp. (NYSE:PC) and Sony Corp. (NYSE:SNE) , both due to announce their corporate earnings later on Friday.
The close of trade on Friday was delayed by 40-minutes as, according to a Tokyo Stock Exchange spokesperson, a single transaction had yet to be closed.
Japanese exporters like Toyota Motor Corp. (NYSE:TM) and Sharp Corp. where amongst Friday's gainers, buoyed by data that showed the U.S. economy had returned to growth.
U.S. gross domestic product (GDP) showed the world's largest economy expanded at an annual rate of 3.5 percent in the third quarter. This is the first quarter of growth after more than a year of contraction. The results roused a circumspect Wall Street to rally and bullish trading followed in Tokyo.
"A rally in U.S. stocks prompted a market rise here, but further gains may be tough for now as investors now want to monitor the economic outlook going forward. Having said that, with eyes on corporate earnings, investors are reacting sensitively to either upward or downward revisions for earnings outlooks," said Kazuhiro Takahashi, General Manager at Daiwa Securities SMBC.
Exporter shares were on the rise with Toyota Motor Corp. rising 2.8 percent to 3,670 yen and Sony gaining 3.5 percent to 2,805 yen. Canon Inc. (NYSE:CAJ) gained 2.3 percent to close at 3,550 yen.
Olympus Corp., a maker of endoscopes, leapt 8.7 percent to 2, 885 yen following reports saying the company is expected to post better-than-expected operating profits of 28 billion yen for the April-September first half, bettering the company's original estimate of 19 billion yen. The Bank of America Corp's (NYSE:BAC) Merrill Lynch unit also upped its investment rating for the company.
Sharp Corp. gained 3.1 percent to 995 yen Friday after posting its first quarterly profit in a year, thanks to robust sales of flat-panel TVs and massive cost cutting. The net profit of 7.4 billion yen in the July-September quarter came after three straight quarters of losses and added to signs that Asia's export companies are starting to recover along with global trade.
According to Sharp Corp. spokesperson Heihachiro Ochiai the result was spurred by robust sales for the company's liquid crystal display televisions in North America, Europe, Japan and China. He also pointed to cost cuts of 200 billion yen, as well as rising sales of mobile phones, as determining factors in helping lift earnings.
Troubled Pioneer Corp. (OOTC:PNCOY) soared 11 percent to 239 yen, the biggest gain on the Nikkei Friday. The maker of plasma screens, car-navigation systems and audio equipment narrowed its full-year net loss projection because of smaller-than-expected drops in plasma-display prices, a weaker-than-expected yen and lower restructuring costs. Among stocks that declined Nintendo Co., the world's largest maker of video-game consoles, shed 4.35 percent to 22,970 yen, after announcing that its second-quarter profit was 64 billion yen compared to a profit forecast of 90 billion yen. Friday's decline was the steepest drop the company has seen since July 31.
The company slashed its full-year net income forecast by 23 percent after price cuts in the flagship Wii game console failed to boost demand.
Ailing airline JAL rose 1.7 percent to 117 yen after it said on Thursday it would apply for a government bailout to inject public capital into the cash-strapped carrier.
"I see many positive surprises and many companies are likely to raise profit forecasts. A gradual recovery will continue in the October-December period," said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc. (NYSE:NMR)
Trade was moderate across the Tokyo exchange's first section, with 892 million shares changing hands, proportionate to last week 's morning average.
Advancing stocks outnumbered declining ones by nearly 3 to 1.
