Tokyo stocks rose for a third straight session on Wednesday morning after a closely-watched business survey showed that sentiment had fallen, but by no more than expected.
The Nikkei 225 average was up 0.6 per cent at 10,985.43 by early afternoon while the Topix index climbed 0.4 per cent to 1,103.70
Investors appeared relieved by the results of the Bank of Japan’s Tankan survey, which revealed a widely-expected dip in confidence among large manufacturers, but showed sentiment holding up in other sectors.
Of the market’s 33 industry sectors, 27 rose in response to the news.
Overnight gains on Wall Street and stability in the currency market, where the yen was trading at Y105.2 against the dollar, also supported Tokyo shares.
Gains in Intel, the world’s biggest chip manufacturer, pushed Japanese makers of chip production equipment higher. Tokyo Electron rose 2.4 per cent to Y6,010 and Advantest was up 1.8 per cent at Y8,130.
Daiei, the struggling retailer, fell 3.8 per cent to Y226 after the Nikkei newspaper reported that Wal-Mart of the US may withdraw from the bidding to sponsor the group’s rehabilitation.
Don Quijote, a discount retailer, plunged for a second day, losing 16.1 per cent to Y5,220, after fires gutted two of its stores north of Tokyo./www.news.ft.com/