Company News

Nikkei rises on tech bounce, Mitsubishi Motors slumps on earnings

* Nikkei buoyed by rise in U.S. tech shares

* Trade slow with upcoming earnings in focus

* Mitsubishi Motors plummets 12% after dismal earnings

TOKYO, July 28 (Reuters) - Japanese shares rose on Tuesday as semiconductor-related shares tracked a rebound in U.S. technology shares, while Mitsubishi Motors plunged to an all-time low after dismal earnings.

The Nikkei share index rose 0.34% to 22,792.76 while the broader Topix gained 0.2% to 1,579.99, with concerns about rising worldwide coronavirus infections offset by hopes of more U.S. fiscal stimulus.

U.S. tech shares closed higher ahead of earnings as investors looked to progress in U.S. government stimulus efforts.

Softbank, which owns many U.S. tech start-up firms through its investment fund, rose 2.0% to hit a 20-year high while TDK jumped 3.7%.

The gains in Tokyo shares came even as the Japanese yen rose to a four-month high near 105 to the dollar. A stronger yen cuts exporters’ overseas profits and tends to negatively affect the market.

Trade was languid, however with many investors on the sidelines ahead of a peak in Japanese earnings announcements this week and next.

Among the firms that announced quarterly results on Monday, Koei Tecmo Holdings jumped 12.7% to a record high after the video game company reported brisk profit growth.

Stanley Electric added 5.9% after the manufacturer of automobile lamps gave stronger annual guidance than expected.

On the other hand, Mitsubishi Motors tumbled 12.3% to a record low after the carmaker posted dismal sales in its key Southeast Asian market and forecast a huge loss for this financial year.

Nissan Motor, which has an alliance with Mitsubishi Motors and is due to announce its earnings after market close, fell 3.9%.

Hitachi Construction dropped 5.8% after its disappointing April-June earnings. (Editing by Jacqueline Wong)