Japan's Nikkei share average edged up on Thursday morning with risk sentiment supported by gains on Wall Street and steady dollar-yen levels, while Toyota extended its gains the day after publishing full-year results.

The Nikkei gained 0.3 per cent to 22,464.35 in mid-morning trade.

Bellwether Toyota's earnings bode well for the Japanese market, traders said, boosting investor confidence in the outlook for Japanese corporate earnings, despite worries about the yen's volatility in the past few months.

“Toyota's results gave the market some relief. The fact that its forecast profit decline is limited while its forex assumption is 105 yen versus the dollar is a good surprise,” said Takuya Takahashi, a strategist at Daiwa Securities.

Shares of Toyota Motor rose 2.3 per cent to hit fresh three-month highs. The shares rose 3.8 per cent on Wednesday after Toyota published its annual results and held a briefing during trading hours, in which the company forecast better-than-expected profits this fiscal year.

Nomura Securities has raised Toyota's target price to ¥9,300 from ¥8,500 citing its proactive investment in new technologies such as electric powertrains and autonomous driving, while cutting costs.

Elsewhere, the mining sector staged a rally as oil prices stay high, with Inpex Corp surging 3.0 per cent. Mitsubishi Motors Corp jumped 10 per cent after it said operating profit was expected to rise 12 per cent in the current financial year, driven by higher vehicle sales in Asia.

Isetan Mitsukoshi Holdings soared 9.3 per cent after the department store operator said its operating profit will likely rise 18.8 per cent to ¥29 billion ($264.48 million) in the year ending March 2019. It also expects a net profit of ¥13 billion, compared with ¥900 million net loss in the previous year.

The broader Topix was flat at 1,772.64.

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