Tokyo: Nikkei rises ahead of US inflation data

JAPAN’S Nikkei index ended higher on Wednesday (May 11) as investors scooped up companies with an upbeat outlook, although gains were capped by concerns around US consumer data due later in the day.

The Nikkei share average edged up 0.18 per cent to close at 26,213.64, after trading in negative territory earlier in the session.

“Investors tried to look for stocks that had positive outlook,” said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

“Still, it was hard to make active bets before confirmation whether the US consumer prices have peaked out or not.”

Investors will closely eye the US April consumer price index reading for signs inflation may be starting to cool, with expectations for an 8.1 per cent annual increase compared to the 8.5 per cent rise recorded in March.

Some gains were also limited by the Dow’s negative finish overnight.

The broader Topix fell 0.60 per cent to 1,851.15, dragged down by Toyota Motor which fell 4.43 per cent after flagging profit declines.

During the market hours, Toyota warned that operating earnings this year could slump by a fifth “due to unprecedented increases in materials and logistics costs”, on the back of a 33 per cent slide in fourth-quarter profit.

The auto and parts sector slid 3.31 per cent.

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Sony Group rose 2.1 per cent after the camera and auto equipment maker announced that its fourth-quarter operating profit more than doubled from a year ago.

Nintendo gained 3.25 per cent after the videogame maker announced a 10-1 stock split effective Oct 1.

Yokogawa Electric surged 12.81 per cent after the company posted a 10 per cent rise in its annual net profit, making it Nikkei’s biggest gainer.

There were 69 advancers on the Nikkei index against 153 decliners.

The volume of shares traded on the Tokyo Stock Exchange’s main board was 1.4 billion, compared to the average of 1.2 billion in the past 30 days. REUTERS