Nikkei rises and market stabilises, but Fast Retailing caps gains

jueves 9 de julio de 2015 22:33 GYT
 

* Nikkei has shed 3.0 pct for the week
    * Fast Retailing tumbles on weak domestic sales outlook
    * Market lifted as the worst over for China shares - traders

    By Ayai Tomisawa
    TOKYO, July 10 (Reuters) - The Nikkei share average rose on
Friday morning as surging China markets eased worries, but gains
were capped by sharp losses in Fast Retailing Co on its weak
domestic sales outlook for the current quarter.
    The Nikkei share average rose 0.4 percent to
19,939.07 points in midmorning trade after opening lower. For
the week, the Nikkei has shed 3.0 percent.
    The broader Topix index outperformed, rising 1.3
percent to 1,599.69.
    In China, the Shanghai Composite index and the
CSI300 index of China's biggest listed companies were
both up more than 5 percent at 0212 GMT.
    Traders say that Tokyo investors will keep focused on
Chinese share moves, but for now, they are relieved after
Beijing's efforts have halted a rout in Chinese stocks.
    Given the recent drop, the Japanese market's valuations have
become attractive, drawing buying by retail investors and
pension funds who usually buy stocks when they are falling,
traders added.
    "Most people think the worst is over," said Isao Kubo,
equity strategist at Nissay Asset Management. "Still, the
Nikkei's downside is expected around 19,000 if anything happens
in China, but I don't think we'll see a further slide below that
level for the time being."
    Meanwhile, the Bank of Japan bought exchange-traded funds
worth 32.4 billion yen on Wednesday and the same amount on
Thursday.
    Index-heavyweight Fast Retailing tumbled 6.0
percent and was the second most traded stock by turnover.
    On Thursday, the company gave a weak outlook for June-August
domestic business, which spurred lukewarm views by analysts.   
 
    Of the 79.39 points the Nikkei gained, Fast Retailing
contributed a hefty 132 negative points to the index's losses.
    While the Nikkei gained 79 points, Fast Retailing pulled the
index down 132 points. 
    The company posted an almost 20 percent year-on-year rise in
third-quarter operating profit to 39.20 billion yen.
    "While results were firm, we suspect they did not quite live
up to high stock market expectations," Credit Suisse analyst
Taketo Yamate wrote in a report.
    He added that although its third-quarter profits beat the
company's internal target, the company left full-year guidance
unchanged due to lower same-store sales in June at the domestic
Uniqlo business.
    Exporters rose, with Honda Motor Co and Nissan
Motor Co both up 1.0 percent.
    Financials also were in demand, with Mitsubishi UFJ
Financial Group advancing 1.8 percent and Mizuho
Financial Group gaining 0.9 percent.
    The JPX-Nikkei Index 400 gained 1.3 percent to
14,461.25.

 (Editing by Richard Borsuk)