Tokyo: Shares end higher on bargain-hunting; post weekly gains

JAPANESE shares closed higher on Friday (May 20), rebounding from a near 2 per cent fall in the previous session, as investors scooped up beaten-down stocks on hopes of corporate earnings growth.

The Nikkei share average ended 1.27 per cent higher at 26,739.03 and marked a 1.18 per cent weekly gain. The broader Topix climbed 0.93 per cent to 1,877.37 and posted a rise of 0.71 per cent for the week.

The gains came even as Wall Street closed lower overnight, hurt by fears about the broadening impact of inflation and a plunge in Cisco Systems due to its dismal outlook.

“Japanese equities were firm today (Friday) even as the Dow and S&P had extended their losses,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.

“Overall, the corporate outlook is relatively strong, and many made modest forecast for currencies, which means there may be a further upside toward the end of the year.”

Uniqlo owner Fast Retailing rose 2.53 per cent and provided the biggest boost to the Nikkei. SoftBank Group followed suit with its 3.5 per cent climb, while chip-making equipment maker Tokyo Electron added 1.27 per cent.

Seiko Epson surged 8.78 per cent and was the top gainer on the Nikkei after the watch maker announced a buyback of up to 9.35 per cent of its shares.

Tokyo Gas fell 2.75 per cent and was the biggest loser on the index after a report said the gas provider would shoulder increasing costs as there was a limit on how much it could pass them on to consumers.

Staffing agency Recruit Holdings rose 6.3 per cent and was the top gainer among the top 30 core Topix names, followed by lens maker Hoya, which jumped 5.32 per cent.

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Touch panel maker Keyence fell 2.39 per cent and was the worst performer among the top 30, followed by air-conditioning maker Daikin Industries, which fell 1.28 per cent. REUTERS