Nikkei hits 18-month high as investors cheer earnings

JAPANESE shares ended higher on Monday (May 15), with the Nikkei notching its highest close in 1½ years as investors sought stocks with robust earnings, while the yen’s weakness also boosted sentiment.

The Nikkei share average rose 0.8 per cent to 29,626.34, its highest close since November 2021. The broader Topix rose 0.9 per cent to 2,114.85 and is within a whisker of a three-decade high.

“Investors scooped up individual stocks that reported positive earnings, which boosted the overall market,” said Maki Sawada, a strategist at Nomura Securities.

The US dollar kept its strength against a basket of major currencies, after posting the biggest weekly gain last week, and was still rising on the yen on Monday even as it eased a little bit against other currencies.

A softer yen tends to help exporters’ shares as it increases the value of overseas profits in yen terms.

Among individual shares, Shiseido jumped 5.2 per cent after the cosmetic maker beat consensus by posting a 97 per cent jump in its net profit for three months through March.

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Beer maker Asahi Group Holding rose 3.3 per cent after its quarterly net profit grew more than four times.

Phone company NTT Corp advanced 2.2 per cent after announcing a stock split.

SBI Shinsei Bank surged 8.6 per cent after Japanese online financial conglomerate SBI Holdings said it would take midsize lender private. SBI Holdings rose 3.9 per cent.

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Uniqlo brand owner Fast Retailing rose 1 per cent to provide the biggest boost to the Nikkei. Bearings-maker NSK jumped 13.5 per cent after posting better-than-expected profits.

Bucking the trend, medical equipment maker Olympus Corp fell 6.8 per cent and Rakuten Group dropped 9 per cent, holding back further Nikkei gains. REUTERS