Nikkei rises on firm earnings, strong yen caps gains (2)

"People still can't see the impact of a slowing U.S. economy and strengthening yen on company earnings from the second-half."

Earnings boosted a number of blue-chip exporters on Monday, while the dollar's rise back above 86 yen provided some additional short-term support.

Hitachi Ltd. rose 4.3 percent to 367 yen. The electronics and industrial group raised its first-half profit forecast by 82 percent to 100 billion yen (1.15 billion U.S. dollars).

The company also reported first-quarter net income of 86.1 billion yen (994.36 million U.S. dollars), reversing an 82.7 billion yen net loss a year earlier.

Seiko Epson Corp. soared 10 percent to 1,249 yen, the sharpest advance since November 2008 as the printer maker posted first- quarter net income of 7.94 billion yen (91.69 million U.S. dollars) , compared with a 22.4 billion yen (258.69 million U.S. dollars) net loss a year earlier.

Meanwhile Honda Motor Co. leapt 4 percent to 2,818 yen. Japan' s second-largest automaker raised its full-year profit forecast by 34 percent to 455 billion yen (5.25 billion U.S. dollars) as vehicle demand in the U.S. and Asia recovered from a global recession.

Nearly 45 percent of major Japanese companies listed on the Tokyo exchange's first section, excluding financials, have reported first-quarter earnings so far, and they are likely to book a 43.2 percent rise in recurring profit for the year to March, according to data compiled by Mizuho Securities Research &Consulting.

About 80 percent of those that have already reported left their forecast numbers for the year unchanged, while only 3 percent lowered their full-year projections, the data showed.

Elpida Memory Inc., the world's third-biggest maker of computer-memory chips, was a significant drag on the market, whoever, tumbling 7.8 percent to 1,199 yen, its lowest close since December 2009, after Goldman Sachs Group Inc. lowered its rating on the stock on concern semiconductor prices will fall next year.

Some 1.44 billion shares changed hands on the Tokyo exchange's First section, down from Friday's volume of around 2.11 billion, with declining issues outnumbering advancing ones by 854 to 642.

Source: Xinhua

【1】 【2】