Nikkei gains on a weaker yen, earnings forecasts divide fortunes
By Shinichi Saoshiro
TOKYO Aug 6 (Reuters) - Japanese shares rose on Thursday as the yen sank to a two-month low against the dollar, with Meiji Holdings soaring after boosting its profit outlook but Kirin Holdings dropping after revising down its sales forecast.
The Nikkei average rose 0.7 percent to 20,750.41 while the broader Topix gained 1.1 percent to 1,683.94.
Exporters like Toyota Motor and robot-maker Fanuc Corp were lifted after the dollar poked above the 125 yen threshold overnight for the first time since early June. The greenback last fetched 124.85 yen.
Toyota, which sank the previous day on concerns towards a slower global economy sapping demand, bounced 1.6 percent. Fanuc gained 3.5 percent.
"Right now the market is simply welcoming a weaker yen. The currency will have to depreciate significantly further before concerns set in that the yen is perhaps too weak," said Tsuyoshi Nomaguchi, a strategist at Daiwa Securities in Tokyo.
"The Nikkei can challenge the June 24 peak (18-1/2 year high of 20,952.71) if dollar/yen builds a firm foothold above 125," he said.
The release of corporate results remained in full swing, with earnings forecasts dividing fortunes.
Dairy products maker Meiji Holdings, which has proved resilient despite the weaker yen increasing import costs, jumped 18.5 percent after boosting its annual profit estimates.
Brewer Kirin Holdings shed 3.7 percent after revising down its annual consolidated net sales forecast on factors including reduced sales in Brazil. (Reporting by Shinichi Saoshiro; Editing by Kim Coghill)
© Thomson Reuters 2016 All rights reserved.