Tokyo: Shares end higher as IMF forecast boosts hopes of higher earnings

[TOKYO] Japanese stocks closed higher on Wednesday, on hopes of better corporate results after the International Monetary Fund (IMF) raised its forecast for global growth, while shares of Nitto Denko jumped following a revision in its earnings outlook.

The Nikkei share average ended 0.31 per cent higher at 28,635.21, while the broader Topix gained 0.65 per cent to 1,860.07.

The International Monetary Fund (IMF) raised its forecast for global economic growth in 2021 and said the coronavirus-triggered downturn last year would be nearly a full percentage point less severe than expected.

"Many of the Japanese stocks are sensitive to the global economy. Investors are taking a fresh look at Japanese shares after the IMF's global economic outlook," said Hideyuki Ishiguro, senior strategist, Daiwa Securities.

Equities in Asia, except Japan, fell, with MSCI's gauge of Asian ex-Japan shares slipping 0.3 per cent.

Back home, electronic components maker Nitto Denko jumped 7.91 per cent to a three-year high, after it raised its annual operating profit forecast to 90 billion yen (S$1.15 billion).

The stock was the top gainer on the Nikkei index, followed by Canon, which jumped 6.71 per cent, and Sharp with a gain of 6.15 per cent.

Shionogi & Co gained 1.12 per cent after the drugmaker said it sold the development and marketing rights for a Covid-19 treatment to California-based biotech BioAge Labs.

ANA Holdings fell 0.61 per cent after the airline said it would suspend 16 international routes and reduce service to three other routes during the summer as the Covid-19 pandemic restricts travel around the world.

Energy and environment services firm Japan Asia Group was priced at a limit high of 1,090 yen after the shares were untraded on a glut of buy orders as US buyout fund Carlyle Group increased its offer.

REUTERS