Japan's Nikkei share average climbed at Wednesday's trade, as strong corporate earnings led by Honda Motor Co and Tokyo Electron Ltd surpassed data showing weak industrial output. The Nikkei 225 increased 0.2 percent to 15,646.23, reports Bloomberg.
After profit exceeded analyst estimates, Shinsei Bank Ltd. increased most significantly on the Nikkei 225 Stock Average.
Japan's industrial production fell the most since the devastating earthquake in March 2011, as official data showed on Wednesday that companies slowed production to offset a build-up in inventories. This called attention to the tax increase's growing impact to the economy. The trade ministry recently reported in Tokyo that the industrial output was down 3.3 percent in June from May.
Hiroichi Nishi, an equities manager at SMBC Nikko Securities Inc. discussed earnings. He said, "The backlash from the sales-tax increase wasn't as severe as first thought. Companies that are battling on are standing out. Results aren't as bad as initially expected," according to Bloomberg.
Kyoya Okazawa, head of global equities at BNP Paribas said that investors are optimistic that Japanese companies are riding out the impact of the April 1 national sales tax increase.
Reuters reported the broader Topix was flat at 1,290.78, and the JPX-Nikkei Index 400 remained the same at 11,755.91.
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