SYDNEY, April 27 (Reuters) - Japanese shares rose sharply on
Monday as some better-than-expected earnings and a rise in U.S.
stock futures lifted market sentiment.
The benchmark Nikkei average .N225 advanced 2.7% to
19,783.22, its highest closing since April 17, with the Nikkei
volatility index .JNIV , considered a fear gauge based on
option pricing, falling 9.8% to 34.9.
E-Mini futures for the S&P 500 ESc1 climbed 1.2% by late
Asian trade after a soft start, providing an extra boost to
Japanese stocks.
During the market's midday break, the Bank of Japan (BOJ)
announced widely anticipated measures to ease corporate funding
strains, including increased buying of commercial paper and
corporate bonds. The overall impact of BOJ's decision on the market was
modest, especially as the central bank left the annual pace of
its purchases of exchanged traded funds (ETFs) and Japanese real
estate investment trusts (J-REITs) unchanged.
Advantest Corp 6857.T jumped 8.4% after the chip-testing
equipment supplier forecast a 14.2% year-on-year increase in
operating profit for the April-June quarter. "Even with difficult external conditions, Advantest expects
steady growth in test demand and aims to sustain and expand
market shares in 5G milliwave and high-end memory areas," said
Jefferies analyst Masahiro Nakanomyo.
Fanuc Corp 6954.T surged 12.0% as the factory automation
company's profit drop in the business year ended in March was
not as bad as some had feared. Analysts said investors also were pleased by Fanuc's
earnings forecast for the April-September half, as it allowed
the market to gauge the potential downside from the impact of
the coronavirus.
Daiichi Sankyo Co Ltd 4568.T fell 1.5% after the drug
maker logged a 56.6% drop in net profit for the year through
March and announced a 3-for-1 share split.
Sekisui Chemical Co Ltd 4204.T climbed 3.5% after the
company announced a plan to buy back up to 1.75% of its own
shares worth 16 billion yen ($150 million). Denso Corp 6902.T shed 2.3% after the auto parts maker
slashed earnings forecast for the year ending March
2021. The broader Topix .TOPX added 1.8% to 1,447.25, with all
but one of the 33 sector sub-indexes on the Tokyo exchange
finishing higher.
Highly cyclical sea transport .ISHIP.T , iron and steel
.ISTEL.T and non-ferrous metals .INFRO.T were the top three
performing sector subindexes on the main bourse.
Overall activity was subdued, with the volume of shares
traded on the main board valued at 2.01 trillion yen, below its
average over the last 20 days of 2.35 trillion yen.
Traders said some investors stayed on the sidelines ahead of
other key central bank meetings of the U.S. Federal Reserve and
the European Central Bank due later this week. the index of Mothers start-up shares .MTHR rose
2.4%.
($1 = 107.1300 yen)