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Japan's Nikkei gets boost from earnings, but Kobe Steel falls
October 26, 2017 / 6:54 AM / a month ago

Japan's Nikkei gets boost from earnings, but Kobe Steel falls

* Daiwa Securities jumps after earnings, lifts securities’ sector

* Kobe Steel falls after certification for some products revoked

By Lisa Twaronite and Ayai Tomisawa

TOKYO, Oct 26 (Reuters) - Japan’s Nikkei share average edged up on Thursday, lifted by shares backed by strong earnings but embattled Kobe Steel fell after saying that it lost an industrial certification for copper products.

The Nikkei ended 0.2 percent higher at 21,739.78.

The share index ended lower the day before, snapping an unprecedented 16-day rising streak that had continued after the victory of Prime Minister Shinzo Abe’s coalition in Sunday’s election fuelled optimism for further stimulus.

“Japanese stocks had such a rapid ascent in October that it’s normal for some adjustment to the pace of gains, even if investors believe there is further upside,” said Ayako Sera, senior market economist at Sumitomo Mitsui Trust.

Thursday’s market was underpinned by strong corporate earnings.

Daiwa Securities Group jumped 5.4 percent after posting higher operating and recurring half-year profit and announcing a share buyback.

It lifted the securities sector to be the best performer on the board.

Shares of Panasonic Corp rose 2.5 percent after the Nikkei reported that the electronics giant will simultaneously increase its lithium battery production in Japan, China, and the United States.

On the other hand, Kobe Steel Ltd shed 1.5 percent after it said on Thursday a Japanese Industrial Standards (JIS) certificate for some products made at its Hatano plant near Tokyo has been revoked because of data falsification.

The move could hurt its business, which has been already affected as some customers are switching orders to competitors.

Advantest Corp skidded 3.4 percent after the chip-making equipment maker cut its net profit outlook for the fiscal year ending March 2018 to 14.5 billion yen from 15 billion yen.

The broader Topix edged up 0.1 percent to 1,753.90. (Editing by Jacqueline Wong)

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