Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Japan shares end higher as earnings cheer offsets virus worries

08/02/2021 | 02:38am EDT

TOKYO, Aug 2 (Reuters) - Japanese shares ended higher on Monday as upbeat earnings from shippers and other cyclical firms countered concerns about the fast-spreading Delta coronavirus variant, which threatens a fragile recovery in the economy.

The Nikkei average ended 1.82% higher at 27,781.02, erasing losses made on Friday, when it marked its lowest close since early January.

The broader Topix gained 2.05% to 1,940.05, its highest close since July 14.

Shippers led gains, adding 9.2% to hit a 13-year high, following strong earnings from Mitsui OSK. The sub-index has gained 18.2% over the past two sessions.

Mitsui OSK shares jumped 10.6%, while rival Kawasaki Kisen soared 9.1% and Nippon Yusen added 8.5%.

Automobile parts maker Denso jumped 5.0%, extending its gains to a second session after reporting strong earnings.

NEC rose 4.0% after the electronics and IT company posted a surprise return to profits in the April-June quarter.

Misumi Group gained 8.8% to hit a record high, after the trading firm specialised in factory automation and machine parts reported brisk earnings.

With about 40% of Topix companies having reported their earnings, operating profit grew about 240% from a year earlier, analysts at Okasan Securities wrote. Of those, 211 firms posted positive surprises, compared with 76 with negative ones, they said.

Among decliners, Kose tumbled 12.1% after the cosmetic firm's results for April-June fell far short of market expectations.

West Japan Railway lost 3.9% after the railway company posted disappointing earnings, underscoring the damage from the pandemic to the sector.

East Japan Railway and Central Japan Railway fell 1.7% and 1.3%, respectively, following their earnings.

Recovery in travel demand looks set to be delayed further as the nation's coronavirus cases are soaring at an unprecedented pace due to the spread of Delta variant.

"In the short term, the COVID-19 weighs on the market as the government expanded state of emergency and cases in Tokyo hit record high," said Takashi Hiroki, chief strategist at Monex Securities. (Reporting by Hideyuki Sano; Editing by Rashmi Aich and Ramakrishnan M.)

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
CENTRAL JAPAN RAILWAY COMPANY -0.59% 16920 End-of-day quote.15.97%
DENSO CORPORATION 3.16% 8152 End-of-day quote.32.90%
EAST JAPAN RAILWAY COMPANY -0.62% 7226 End-of-day quote.4.95%
KAWASAKI KISEN KAISHA, LTD. 0.60% 5020 End-of-day quote.137.69%
KOSÉ CORPORATION -0.65% 13770 End-of-day quote.-21.76%
MISUMI GROUP INC. -2.35% 4780 End-of-day quote.41.21%
MITSUI O.S.K. LINES, LTD. -0.77% 6440 End-of-day quote.104.44%
NEC CORPORATION 0.16% 6280 End-of-day quote.13.36%
NIKKEI 225 -0.15% 29025.46 Real-time Quote.5.92%
NIPPON YUSEN KABUSHIKI KAISHA 0.67% 7540 End-of-day quote.213.91%
OKASAN SECURITIES GROUP INC. 0.26% 393 End-of-day quote.4.80%
WEST JAPAN RAILWAY COMPANY -0.73% 5331 End-of-day quote.-1.26%
Latest news "Economy & Forex"
05:54pFashion firm Rent the Runway aims for nearly $1.3 billion valuation in U.S. IPO
05:54pToronto market scales record high on rotation into technology
05:52pU.S. Democrats battle over climate change plans in $3.5 trillion bill
05:50pU.S. bill would stop Big Tech favoring its own products
05:49pCarbon fee on the table for climate policy -Biden adviser
05:48pYellen to extend extraordinary debt management measures through Dec 3
05:48pInvesco drops pursuit of bitcoin futures etf filing before debut - bloomberg news
05:48pInvesco Drops Pursuit Of Bitcoin Futures ETF Filing Before Debut - Bloomberg News
05:40pBipartisan group of u.s. senators formally introduces antitrust bill aimed at stopping big tech from favoring its own products on platforms
05:33pThe WSJ Dollar Index Rises 0.04% to 88.42 -- Data Talk
Latest news "Economy & Forex"