© Reuters. A screen showing stock price data in Tokyo on February 25, 2022. Photo: Kim Kyung-Hoon / Reuters.
TOKYO (Reuters) – Japanese equities rose Tuesday as electric car maker Nidec Corp began its earnings season with strong results and boosted hopes that other companies could benefit from a weakening yen.
The index rose at the start of trading on Tuesday by just 0.51 percent, but closed up 1.02 percent, while the broader Topix index rose 1.06 percent.
Nidec shares were the best performers in the index, jumping 4.97%, after the company posted record operating earnings in the second quarter, supported, among other factors, by the decline in the yen.
The Japanese currency fell more than 20% from this year, including a 6% decline in the July-September quarter alone.
“The market has welcomed Nidec’s earnings,” Kazuo Kamitani, an equity analyst at Nomura Securities, told reporters.
“With the impact of the yen falling to all-time lows and strong growth in electric car sales, we cannot say that this will have a significant impact on the entire market, but it should help with the strong outlook for the next earnings reports,” ” He added.
Nidec shares are down more than 38% this year, compared to the Nikkei’s 5.36% decline.
The Nikkei received more support from shares in the heavyweight group SoftBank, which were up 3.77%.
(Prepared by Suha Jado for the Arabic Bulletin)
