Nikkei closes higher, supported by strong results

Japanese stocks rose on Tuesday, October 25 as electric car maker Nidec Corp. started its earnings season with solid results and boosted hopes that other companies might benefit from the weak yen.

The index rose at the beginning of trading today only 0.51%, but ended trading up 1.02%, while the broader Topix index rose 1.06%.

Nidec shares was the best performer on the Nikkei index, as it jumped 4.97%, after the company posted a record operating profit in the second quarter, supported by the yen’s decline, among other factors.

The Japanese currency has fallen more than 20% against the dollar this year, including a 6% drop in the July-September quarter alone.

“The market welcomed Nidec’s earnings,” Kazuo Kamitani, equity analyst at Nomura Securities, told reporters.

“With the impact of the yen falling to record lows and strong growth in e-car sales, we can’t say that this will have a significant impact on the entire market, but it should help with the strong outlook for upcoming earnings reports,” he added.

Nidec shares are down more than 38% this year, compared to the Nikkei’s 5.36% drop.

The Nikkei received more support from the heavyweight SoftBank Group, which rose 3.77%.