Japan's Nikkei rebounds from three-month low but set for weekly drop

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26/07/2024 04:17

TOKYO, July 26 (Reuters) - Japan's Nikkei share average
traded higher on Friday, snapping a seven-day losing streak, as
investors scooped up stocks that appeared undervalued after the
long decline.
    The Nikkei  .N225  inched up 0.5% by the midday break,
recovering from a three-month low reached in the previous
session. The index is set to fall 5% for the week. 
    The broader Topix  .TOPX  rose 0.58% to 2,725.55 and is
poised to fall 4.72% for the week.
    "The market fell too much so that investors bought back
stocks, but still heavyweight chip-related stocks were weak,
which capped the gains," said Shuutarou Yasuda, a market analyst
at Tokai Tokyo Intelligence Laboratory. 
    "But the bright side was that the market bought companies
that reported a positive outlook. With the earnings season
continuing after next week, a strong corporate outlook is
expected to support the Nikkei." 
    Hino Motors  7205.T  surged 11.76% to become the top
percentage gainer on the Nikkei after the truck maker narrowed
its quarterly net loss. 
    Canon  7751.T  jumped 8.29% after the camera maker reported
on Thursday its annual operating profit rose to 465 billion yen
($3.02 billion), up 24% from a year earlier. 
    Fujitsu  6702.T  jumped 10.51% after the computer maker said
on Thursday its quarterly net profit quadrupled to 16.8 billion
yen. 
    However, Nissan Motor  7201.T  extended losses, falling
2.8%, after falling 7% on Thursday as the automaker slashed its
annual outlook.   
    Renesas Electronics  6723.T  fell 5.55% to become the
biggest percentage loser on the Nikkei. The chip-maker tanked
13.6% on Thursday after reporting a 29% decline in net profit
for six months to June.
    Heavyweight chip-related stocks fell, with Tokyo Electron
 8035.T  and Advantest  6857.T  falling 2.29% and 1.65%,
respectively.
    Of the 225 Nikkei components, 168 stocks rose and 57 fell.

($1 = 153.9500 yen)

 (Reporting by Junko Fujita; Editing by Christian Schmollinger)
 ((junko.fujita@thomsonreuters.com;))