TOKYO: Japanese stocks gained on Wednesday as hopes rose for better corporate earnings after the International Monetary Fund raised its forecast for global growth, while shares of Nikko Denko raced to the top of the Nikkei on its revised earnings outlook.

The Nikkei share average rose 0.46% to 28,677.92 by 0144 GMT, while the broader Topix climbed 0.57% to 1,858.52.

The International Monetary Fund (IMF) raised its forecast for global economic growth in 2021 and said the coronavirus-triggered downturn last year would be nearly a full percentage point less severe than expected.

“Many of the Japanese stocks are sensitive to the global economy. Investors are taking a fresh look at Japanese shares after the IMF’s global economic outlook,” said Hideyuki Ishiguro, senior strategist, Daiwa Securities.

Electronic components maker Nitto Denko jumped 5.77% after it raised its annual operating profit forecast to 90 billion yen ($867.89 million) from 75 billion yen based on growing demand for capacitors for personal computers.

Murata Manufacturing rose 1.27%, Fanuc gained 1.86% and Nidec added 1.94%.

Nippon Express climbed 1.66% after the logistics firm said it was considering selling its headquarters building in Tokyo, a sale which the Yomiuri newspaper reported could fetch more than 100 billion yen.

Online broker Monex Group was up 1.8% following a report on its partnership with Shinsei Bank

The largest percentage losers in the index were M3 Inc , which fell 5.42%, followed by Tokyo Electric Power , losing 2.56%, and Advantest that shed 2.2%. 

Reuters