JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
By Tomo Uetake
TOKYO, Jan 31 (Reuters) - Nikkei closed higher on Friday as
some upbeat corporate earnings and forecasts helped, although
the benchmark recorded its worst weekly slide in six months on
fears of the rapidly-spreading coronavirus in China.
The Nikkei share average .N225 ended 1.0% higher at
23,205.18, but lost 2.6% in the week. January's fall of 1.9% was
its first monthly loss since August last year.
The broader Topix .TOPX closed up 0.6% at 1,684.44 to end
a punishing week.
Investors remained on the edge over how much the virus could
disrupt the global economy, with the World Health Organisation
(WHO) declaring it a global health emergency.
"Although I'm not denying the possibility that this
coronavirus outbreak may hurt the economy, I think it has only
limited and short-lived impact on Japan's stock market," said
Archibald Ciganer, co-head of Japanese equity at T.Rowe Price.
"It has provided buying opportunities for some investors.
But I would say, it is an 'already done' theme."
Indeed, it appears to be a classic "buy on the rumour, sell
on the fact" situation, traders said, adding that some
short-term players saw the WHO's declaration as a cue to buy
back shares.
Driving sentiment on Friday were a slew of upbeat corporate
earnings results from Japanese companies.
Fujitsu Ltd 6702.T soared 12% to an 18-year high after the
information technology conglomerate raised its profit and
dividend forecasts, and announced a share buyback.
Anritsu Corp 6754.T jumped 7.8%, also on upbeat earnings
due to strong 5G-related demand. Strong earnings also boosted Chugai Pharmaceutical Co Ltd
4519.T , the second-biggest Japanese drugmaker by market cap,
by 7.6%. On the other hand, Nintendo Co Ltd 7974.T closed at a
three-month low on profit-taking. The gaming company posted its
highest quarterly profit in 10 years on strong demand for Switch
and raised the full-year sales forecast of the console.
Electronic parts maker Alps Alpine Co Ltd 6770.T dived
10.9% after it cut its profit and dividend estimates for the
year to March. Car parts maker Denso Corp 6902.T lost 0.9% after it cut
profit outlook. Chip-making machine maker Screen Holdings 7735.T slid 6.5%
after declining by its daily limit of 19.3% on Thursday,
following surprise downgrades to its earnings estimates.