TOKYO, Feb 5 (Reuters) - Japanese shares climbed more than
1% on Wednesday as gains on Wall Street and a weaker yen buoyed
investor sentiment, although the rally was limited by worries
over the fast-spreading coronavirus outbreak.
The benchmark Nikkei average .N225 rose 1.2% to 23,350.00
by the midday break, while the broader Topix .TOPX added 1% to
1,701.71.
All but one of the 33 sector subindexes on the Tokyo Stock
Exchange were in positive territory, led by textiles .ITXTL.T
non-ferrous metals .INFRO.T and insurance .IINSU.T .
On Wall Street, the Nasdaq .IXIC jumped 2.1% to a record
high on Tuesday, while the S&P 500 .SPX and the Dow .DJI
advanced 1.7% each as investors took heart from China's efforts
to minimise the economic impact from the coronavirus epidemic.
The safe-haven yen nursed losses versus the dollar and was
last at 109.48 yen JPY=EBS , close to a one-week low hit on
Tuesday, providing a tailwind for Japanese exporters. A weaker
yen boosts corporate profits when they are repatriated.
Sharp Corp 6753.T climbed 1.7% after the electronics
company reported a 38.5% increase in third-quarter operating
profit, due to gains at its smart appliance division and
cost-reduction efforts. Panasonic Corp 6752.T continued its advance, with the
share ending the morning session up 2.1%, two days after the
electronics conglomerate said its automotive battery venture
with Tesla Inc TSLA.O was in the black for the first time.
Sony Corp 6758.T gained 0.4% in a choppy trade after the
firm raised its annual profit outlook, due to strong sales of
smartphone image sensors. However, it warned of an impact from
the Wuhan coronavirus on its global supply chain. Many traders doubted the rally is sustainable, noting the
lingering concerns about the virus outbreak and its broader
economic and market impact.
The death toll from the flu-like virus that originated in
China's central city of Wuhan has passed 490, as two U.S.
airlines suspended flights to Hong Kong following the first
fatality there and 10 cases were confirmed on a quarantined
Japanese cruise ship.