BLBG: Japanese Stocks Rise on Earnings Reports, Drop in Unemployment
By Akiko Ikeda and Toshiro Hasegawa
Oct. 30 (Bloomberg) -- Japanese stocks rose for the first time in four days as results from companies and government unemployment data beat estimates.
Olympus Corp., a maker of endoscopes, jumped 9.2 percent following a report by Nikkei English News saying the company may report higher-than-forecast operating profit and after Bank of America Corp.’s Merrill Lynch unit boosted its investment rating. Sharp Corp., Japan’s largest maker of liquid-crystal displays, climbed 2.5 percent after the company reported a narrower loss than estimated by analysts. Takeda Pharmaceutical Co. rallied 3.4 percent after Asia’s biggest drugmaker said profit doubled.
“I see many positive surprises and many companies are likely to raise profit forecasts,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc. “A gradual recovery will continue in the October-December period.”
The Nikkei 225 Stock Average rose 1.5 percent to 10,034.74 at the market close in Tokyo. The broader Topix index added 1.4 percent to 894.67, with more than two stocks advancing as declining. The broad gauge sank 1.7 percent this month and has increased 4.1 percent this year.
Japan’s joblessness rate declined to 5.3 percent in September from 5.5 percent in August, the statistics bureau said today in Tokyo. The median estimate of 29 economists surveyed by Bloomberg was for the rate to increase to 5.6 percent and only one person predicted a drop.