Japan stocks rise on carmaker, Asia gains

Feb 2, 2012, 6:47 GMT

Tokyo - Japanese shares climbed Thursday led by carmakers as market sentiment was lifted by gains on other Asian markets.

The benchmark Nikkei 225 Stock Average gained 67.03 points, or 0.76 per cent, to end at 8,876.82 while the broader Topix index was up 4.49 points, or 0.59 per cent, at 762.45.

The Tokyo Stock Exchange had suspended trading of 241 stocks due to computer system errors in the morning. The bourse, however, resumed trading of the suspended issues at 12:30 pm (0330 GMT).

Tokyo stocks advanced as some other Asian markets rallied. By midafternoon, Hong Kong's Hang Seng index had risen 1.54 per cent and China's Shanghai Composite Index had climbed 1.25 per cent.

Investors picked up undervalued shares in carmakers such as Toyota Motor Corp, Honda Motor Co and Nissan Motor Co. Toyota jumped 1.79 per cent, Honda 1.8 per cent and Nissan was up 0.82 per cent.

Sharp Corp dived 15.92 per cent after the company said Wednesday it expected a record net loss of 290 billion yen (3.8 billion dollars) for the current financial year through March due to the yen's rise and slumping sales amid global economic problems.

A strong yen makes Japanese goods more expensive overseas and erodes repatriated earnings.

On currency markets at 3 pm (0600 GMT), the dollar traded at 76.13-15 yen, down from Wednesday's 5 pm quote of 76.18-20 yen.

The euro was quoted at 100.28-31 yen, up from 99.40-44 yen late Wednesday, and at 1.3172-3173 dollars, up from 1.3048-3050 dollars.