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Nikkei up 1pc as earnings not so bad

Wednesday, October 31 07:31:27

Japan's Nikkei share average advanced today as investors took comfort that some firms, such as Hitachi Ltd and Komatsu Ltd, did not cut their full-year earnings guidance as feared. Index heavyweight Fanuc Corp, which gained 1.6 percent, also lent support to the index after its client and Apple Inc supplier Hon Hai Precision Industry posted strong third-quarter results. The Nikkei rose 1 percent to 8,928.29 points, regaining ground which was lost in the previous session after the Bank of Japan eased policy in line with expectations, disappointing some who had hoped the central bank would take bolder steps to lift the economy out of deflation. Wednesday's gain helped the benchmark to end the month 0.7 percent higher, its third straight monthly gain.

The Nikkei is up 5.6 percent this year. "We obviously had that sell-off yesterday after the BOJ ... We are seeing a bit of buying," a senior trader at a foreign bank said. "I guess yesterday's results were perhaps a little bit better than expected." Komatsu climbed 3.2 percent after the construction machinery maker maintained its full-year operating profit forecast, easing concerns it would cut its outlook when it reported first-half results after the market close on Tuesday. Many firms have slashed their profit forecasts this earnings season as a stuttering global growth and a boycott of Japanese products in China over a territorial dispute threatens revenues. ( C ) Reuters