The Nikkei rose 0.42 percent on Friday as investors, encouraged by stronger-than-expected gross domestic product (GDP) data, picked up Canon Inc and other stocks that had recently declined.
Shipping firms advanced after UBS raised its ratings and target prices, while Kajima Corp and other firms whose earnings disappointed investors lost ground.
"Following extended losses on Wall Street investors held back initially, but GDP came in better than expected and they began buying stocks on dips," said Kazuhiro Takahashi, general manager at equity planning and administration department, Daiwa Securities SMBC Co Ltd.
Analysts said gains in US equities index futures on the Globex electronics platform also encouraged investors. The Nikkei average gained 68.27 points to 16,155.45. But the Nikkei booked its second straight weekly loss, falling 2.69 percent from last Friday. The TOPIX index edged down 0.40 percent to 1,638.57.
Cabinet Office data showed on Friday that Japan's GDP expanded 0.5 percent in real, price adjusted terms in the January-March quarter from the previous quarter, aided by resilient capital spending and consumption.
Shipping firms advanced following upgrades by UBS. Industry leader Nippon Yusen KK rose 4.7 percent to 730 yen after UBS raised its target price to 900 yen from 750 yen. Second-ranked Mitsui O.S.K. Lines Ltd rose 3.3 percent to 806 yen after its target price was lifted by 100 yen to 1,000 yen. UBS upgraded both stocks to "buy 2" from "neutral 2".
Some banks also rebounded, with leading banking group Mitsubishi UFJ Financial Group Inc up 0.6 percent at 1.67 million yen. Takahashi of Daiwa Securities said bank shares will be closely watched as the companies are scheduled to announce earnings results next week.
Losers included builder Kajima which dropped 2.2 percent to 592 yen, extending losses to an eighth session after its profit forecast for the year to March 2007 fell short of expectations.
On the technology sector, chip equipment maker Tokyo Electron Ltd rose 1.4 percent to 8,730 yen after US trade group data showed on Thursday that the book-to-bill ratio of North American semiconductor chip equipment orders for April was the highest level in two years. Advantest Corp gained 1 percent to 11,990 yen.
After the market closed, Millea Holdings Inc, Japan's biggest general insurer, said it would make affiliate Nisshin Fire & Marine Insurance Co a wholly owned unit by buying the roughly 70 percent of Nisshin's shares that it does not already own.
The news had already been reported in the Nihon Keizai daily and Millea closed 1.5 percent higher at 2.09 million yen while Nisshin Fire & Marine Insurance jumped 12.6 percent to 555 yen.
Trade volume was the lowest in four sessions, with 1.91 billion shares changing hands on the Toyko exchange's first section. Advancers beat decliners by a ratio of nearly 2 to 1.
Comments
Comments are closed.