The stock market in Japan closed markedly higher on Wednesday thanks to solid price gains from car manufacturer Nissan Motor and tech investor SoftBank. Nissan raised its full-year profit forecast for the second year in a row thanks to strong quarterly figures. At SoftBank, the plan to bring subsidiary Arm to the stock exchange was well received, now that the sale of the chipmaker to the American Nvidia is not going ahead.
The Nikkei in Tokyo ended with a 1.1 percent gain at 27,579.87 points. Nissan gained almost 6 percent. The company’s higher earnings forecast is related to, among other things, the weaker yen and optimistic sales expectations. Despite the fact that Nissan’s factories are not running at full speed due to chip shortages and the corona virus, the company was able to reduce costs.
SoftBank also climbed nearly 6 percent. The major tech investor wants to sell Arm through an IPO before the end of the fiscal year, which runs until March 2023. Toyota (plus 0.9 percent) also came up with figures. The world’s largest automaker posted a higher-than-expected profit last quarter despite production problems due to shortages of parts and chips. Toyota kept its full-year profit forecast unchanged, but slightly reduced its production target.
The Hang Seng index in Hong Kong was up 2.1 percent in the meantime, thanks to a significant price recovery of the Chinese tech companies. Alibaba added 6.5 percent after SoftBank said it would not sell shares of the Chinese online retailer. Earlier this week, reports surfaced that SoftBank, which has a nearly 25 percent stake in Alibaba, would like to sell about 1 billion shares of Alibaba. Internet group Tencent rose more than 2 percent and meal delivery Meituan won more than 3 percent.
In Shanghai, the main index rose 0.7 percent and the Kospi in Seoul rose 0.6 percent. The All Ordinaries in Sydney gained 1.1 percent thanks to strong price gains among the Australian banks.
Nissan and SoftBank soar on Japanese exchange after trade updates
Source link Nissan and SoftBank soar on Japanese exchange after trade updates