This photo shows the Tokyo Stock Exchange. (Mainichi).jpg
TOKYO (Kyodo) — Tokyo stocks ended higher Thursday for a third straight day, with the Topix closing at a record high, buoyed by strong corporate earnings and upward revisions to profit outlooks.
The 225-issue Nikkei Stock Average climbed 264.29 points, or 0.65 percent, from Wednesday at 41,059.15. The broader Topix index finished 21.35 points, or 0.72 percent, higher at 2,987.92.
On the top-tier Prime Market, gainers were led by electric power and gas, warehousing and harbor transportation service and bank issues.
The U.S. dollar briefly strengthened to the upper 147 yen range in Tokyo on buying by Japanese companies ahead of the summer holidays, but it later retreated to the higher 146 yen range amid a lack of new trading cues, dealers said.
At 5 p.m., the dollar fetched 146.80-82 yen, compared with 147.30-40 yen in New York and 147.55-57 yen in Tokyo at 5 p.m. Wednesday.
The euro was quoted at $1.1688-1690 and 171.59-63 yen against $1.1655-1665 and 171.72-82 yen in New York and $1.1581-1582 and 170.88-92 yen in Tokyo late Wednesday afternoon.
The yield on the benchmark 10-year Japanese government bond ended at 1.485 percent, down 0.010 percentage point from Wednesday’s close, as the debt was bought after a 30-year bond auction by the Finance Ministry met solid demand.
The Nikkei stock index was initially weighed down by heavyweight chip shares after U.S. President Donald Trump said Wednesday he will impose a tariff of about 100 percent on semiconductor imports.
However, Apple Inc. suppliers such as TDK helped lift the market, as the U.S. tech giant’s plan to invest an additional $100 billion in boosting domestic production raised hopes for improved earnings, brokers said.
The market later drew support from companies that posted solid earnings and outlooks, with Sony Group climbing 4.1 percent to 3,860 yen after it raised its profit forecast for the current fiscal year following a reassessment of the negative impact of higher U.S. tariffs.
“Earnings outlooks that reflected pessimistic or conservative views are now seen as having room to be revised upward” after a Japan-U.S. trade deal, said Maki Sawada, a strategist in the Investment Content Department of Nomura Securities Co.
Meanwhile, Toyota Motor fell 1.5 percent to 2,680 yen after slashing its net profit forecast for the current fiscal year due to a higher auto levy imposed by the United States.
AloJapan.com