Nikkei rebounds from 2-month low as earnings recover

TOKYO, Nov 2 (Reuters) - Japan's Nikkei share average jumped
on Monday, weathering the impact from downbeat U.S. stocks late
last week, as signs of a recovery in earnings at home and a
relatively contained domestic COVID-19 situation lifted
sentiment.
The Nikkei .N225 rose 1.42% to 23,303.42, erasing all of
its Friday losses that took it to a two-month closing low. The
broader Topix .TOPX gained even more, rising 1.78% to 1,607.39
from Friday's near-three-month trough.
"Looking at Japanese earnings, you can see cyclicals are
recovering. Some companies are raising their annual guidance
more than expected," said Fumio Matsumoto, chief strategist at
Okasan Securities.
Keyence 6861.T , the fourth-largest company on the Tokyo
bourse by market capitalisation, rose 1.7% after the developer
of sensors and other electronic goods announced upbeat quarterly
earnings.
Makita Corp 6586.T jumped 8.3% following its brisk
earnings, while M3 2413.T , which has more than doubled so far
this year, added 1.4%.
But, Murata Manufacturing 6981.T dipped 0.9%, failing to
maintain earlier gains on profit-taking. The company had revised
up its annual estimates more than expected, citing stronger
recovery in smart phone and automobile-related demand.
Cheaper, value shares attracted investors' bargain-hunting
the most, with limited virus cases in Japan giving some
advantage. Daily new infections remain less than one thousand
compared with over ten thousands in most other G7 countries.
Japan Tobacco 2914.T rose 6.1% after its earnings.
The electricity and gas companies' .IEPNG.T index was the
top performer, with a gain of 3.1%, followed by real estate
.IRLTY.T and steelmakers .ISTEL.T , both up 2.9% each.
Toyota 7203.T rose 2.4% and KDDI 9403.T gained 5.0%
after they said the automaker would invest 52.2 billion yen
($500 million) in the mobile carrier to deepen their partnership
in the age of the "connected car". The Mothers start-up index .MTHR fell 0.7% to a
1-1/2-month low, as investors took profits from their rally this
year.
Similarly some of stay-home winner shares came under
pressure, with Z Holdings 4689.T falling 10% after its
earnings.