Japanese shares end higher on bargain-hunting; post weekly gains
Japanese shares closed higher on Friday, rebounding from a near 2% fall in the previous session, as investors scooped up beaten-down stocks on hopes of corporate earnings growth.
The gains came even as Wall Street closed lower overnight, hurt by fears about the broadening impact of inflation and a plunge in Cisco Systems (CSCO) due to its dismal outlook.
"Japanese equities were firm today (Friday) even as the Dow and S&P had extended their losses," said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
"Overall, the corporate outlook is relatively strong, and many made modest forecast for currencies, which means there may be a further upside toward the end of the year."
Uniqlo owner Fast Retailing (FRCOF) rose 2.53% and provided the biggest boost to the Nikkei. SoftBank Group (SFTBY) followed suit with its 3.5% climb, while chip-making equipment maker Tokyo Electron (8035) added 1.27%.
Seiko Epson (SE7) surged 8.78% and was the top gainer on the Nikkei after the watch maker announced a buyback of up to 9.35% of its shares.
Tokyo Gas (9531) fell 2.75% and was the biggest loser on the index after a report said the gas provider would shoulder increasing costs as there was a limit on how much it could pass them on to consumers.