By Stanley White
TOKYO, Feb 10 (Reuters) - Japanese stocks erased early
losses and rose on Wednesday as an earnings forecast upgrade
from Honda backed expectations for an improving outlook for
corporate profits amid an improving global economy.
The Nikkei index .N225 gained 0.01% at 29,503.60 by 0203
GMT, with energy and consumer cyclical companies leading gains.
The broader Topix .TOPX rose 0.29% to 1,931.44.
Since the start of the year, the Nikkei has rallied more
than 7% to its highest level since 1990 as investors buy
Japanese exporters that are expected to benefit as the global
economy recovers from the COVID-19 pandemic.
Stocks have risen so quickly that some traders warn that a
correction lower is overdue, but most analysts say the Nikkei is
still on track to reclaim the psychological important 30,000
mark because the earnings season so far been better than
expected.
"A lot of investors are buying on dips, which shows that the
mood is positive," said Masahiro Yamaguchi, head of investment
research at SMBC Trust Bank.
"The global economic recovery will become more concrete as
the year progresses, which benefits Japanese companies that are
sensitive to global growth."
The stock that gained the most among the top 30 core Topix
names was Honda Motor Co Ltd 7267.T , which rose 6.38%, after
the automaker upgraded its earnings forecasts. Toyota Motor Co 7203.T also rose 2.5% ahead of its
earnings report due later in the day.
The second-biggest gainer was Nintendo Co Ltd 7974.T ,
which rose 2.73%.
The underperformers among the Topix 30 were Daiichi Sankyo
Co Ltd 4568.T , down 1.68%, and Astellas Pharma Inc 4503.T ,
down 1.50%.
So far this earnings season, 80% of Japanese companies have
beaten forecasts for the December quarter, according to
Refinitiv data. There were 131 advancers on the Nikkei index against 89
decliners.