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Tokyo stocks close up 0.17%

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(Globalpost/GlobalPost)

Tokyo stocks rose 0.17 percent Tuesday on late bargain-hunting and despite Nissan shares plunging more than 10 percent after the auto giant slashed its full-year earnings forecast.

The benchmark Nikkei 225 index gained 23.80 points to 14,225.37, while the Topix index of all first-section shares was flat, slipping 0.04 percent, or 0.45 points, to 1,182.58.

The market opened higher but soon lost ground as the yen pushed higher against the dollar following a three-day weekend. A strong yen tends to weigh on Tokyo share prices as it makes exporters less competitive overseas.

"But players bought on dips, welcoming a slide in the yen against the dollar in late trading," said Toshikazu Horiuchi, a broker with IwaiCosmo Securities.

The dollar recovered to 98.45 yen from a 98.22 yen low on Tuesday, compared with 98.59 yen in New York late Monday.

"But selective shares, such as Nissan, faced selling pressure due to disappointing earnings results," Horiuchi said.

Nissan Motor plunged 10.40 percent to 861 yen after it cut its full-year profit forecast on Friday.

Japan's number-two automaker also announced a sweeping management overhaul to "rejuvenate" its top ranks.

Suzuki Motor also fell 0.80 percent to 2,460 yen, despite a record half-year profit. The small-car maker on Friday also lowered its sales volume forecast for automobiles and motorcycles.

"The market is now paying attention to Toyota," which will release its half-year earnings on Wednesday, Horiuchi said.

Sony, which tumbled more than 11 percent on Friday after cutting its full-year earnings outlook, edged up 0.06 percent to 1,669 yen.

Wall Street ended higher ahead of the release of economic indicators later in the week, including October non-farm payrolls and third-quarter economic growth. The Dow rose 0.15 percent to 15,639.12.

-- Dow Jones Newswires contributed to this story --

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http://www.globalpost.com/dispatch/news/afp/131105/tokyo-stocks-close-017-0