Nikkei gains on a weaker yen, earnings forecasts divide fortunes

  • Reuters
  • Stock Market News
Nikkei gains on a weaker yen, earnings forecasts divide fortunes
Credit: © Reuters.

By Shinichi Saoshiro

TOKYO, Aug 6 (Reuters) - Japanese shares rose on Thursday as the yen sank to a two-month low against the dollar, with Meiji Holdings soaring after boosting its profit outlook but Kirin Holdings dropping after revising down its sales forecast.

The Nikkei average .N225 rose 0.7 percent to 20,750.41 while the broader Topix .TOPX gained 1.1 percent to 1,683.94.

Exporters like Toyota Motor 7203.T and robot-maker Fanuc Corp 6954.T were lifted after the dollar poked above the 125 yen JPY= threshold overnight for the first time since early June. The greenback last fetched 124.85 yen.

Toyota, which sank the previous day on concerns towards a slower global economy sapping demand, bounced 1.6 percent. Fanuc gained 3.5 percent.

"Right now the market is simply welcoming a weaker yen. The currency will have to depreciate significantly further before concerns set in that the yen is perhaps too weak," said Tsuyoshi Nomaguchi, a strategist at Daiwa Securities in Tokyo.

"The Nikkei can challenge the June 24 peak (18-1/2 year high of 20,952.71) if dollar/yen builds a firm foothold above 125," he said.

The release of corporate results remained in full swing, with earnings forecasts dividing fortunes.

Dairy products maker Meiji Holdings 2269.T , which has proved resilient despite the weaker yen increasing import costs, jumped 18.5 percent after boosting its annual profit estimates.

Brewer Kirin Holdings 2503.T shed 3.7 percent after revising down its annual consolidated net sales forecast on factors including reduced sales in Brazil.

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