Nikkei advances on strong corporate earnings, weaker yen

  • Reuters
  • Stock Market News
Nikkei advances on strong corporate earnings, weaker yen
Credit: © Reuters.

* Nikkei ends day up 0.86 pct, brushes 12-day high

* Blue chips such as Sharp, Sony and Nintendo up on solid earnings

* Apple-linked shares gain after iPhone maker posts strong results

* Latest trade-related headlines taken in stride for now

* JGB yield spike lifts banking sector but weighs on real estate

By Shinichi Saoshiro

TOKYO, Aug 1 (Reuters) - Japan's Nikkei share average rose on Wednesday, brushing a 12-day high, buoyed by strong earnings for blue chips such as Sony and Sharp and the yen's slide to near two-week lows against the dollar.

The Nikkei .N225 ended the day up 0.86 percent at 22,746.70 after touching 22,775.47, its highest since July 20.

"The gains by U.S. shares and the yen's depreciation are supportive for the Nikkei. It has become easier for the market to focus on such supportive factors with the Bank of Japan's policy meeting over," said Yutaka Miura, senior technical analyst at Mizuho Securities. .N

The dollar extended its rally and rose above 112.00 yen JPY= for the first time since July 20, having bounced from a low of 110.75 after the BOJ tweaked monetary policy on Tuesday but stuck to an easy policy framework.

Reports that the Trump administration plans to propose slapping tariffs of 25 percent on $200 billion of Chinese imports, after initially setting them at 10 percent, were taken in stride for now. corporate results from abroad and at home helped lift a variety of shares on Wednesday.

Sony Corp 6758.T rose 4.8 percent after the company reported record first quarter profit thanks to a surge in the sales of game software. by strong sales of Switch game titles, Nintendo Co 7974.T reported a better-than-expected 88 percent jump in first quarter operating profit and the company's shares were up 6.37 percent. Corp 6753.T gained 7.2 percent after its first quarter operating profit soared 45 percent on the back of its core display business and strong sales of camera modules and sensors. AAPL.O shares also advanced after the iPhone maker posted quarterly results that topped Wall Street targets and forecast above-expected revenue in the current quarter. component maker Kyocera Corp 6971.T rose 5.9 percent and display manufacturer Nitto Denko Corp 6988.T added 8 percent.

The banking subsector .IBNKS.T advanced 2.8 percent, buoyed by a rise in long-term interest rates - a boon to banks' profitability.

Mitsubishi UFJ Financial Group 8306.T was up 2.4 percent and Mizuho Financial Group 8411.T rose 2.7 percent. Bank of Kyoto 8369.T surged 8.1 percent.

Japan's benchmark 10-year yield JP10YTN=JBTC rose on Wednesday to a 1-1/2-year high as the bond market tested the BOJ after the central bank said it will allow for greater flexibility in yield moves. JP/

Declining shares included semiconductor maker Renesas Electronics 6723.T , which slumped 8.2 percent after company issued a bearish forecast for the year through December. Corp 6752.T slipped 1.8 percent despite posting a 19 percent increase in first quarter profit as three of its four main business segments experienced operating profit declines. broader Topix .TOPX gained 0.94 percent to 1,769.76. (Editing by Shri Navaratnam)

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