Sanrio and Rakuten Group shares plunged after their earnings releases, while buying led the market in Square Enix Holdings after its results exceeded expectations. The Nikkei Average extended its gains, with attention focused on the U.S. CPI data due tonight.
The Nikkei Average extended its gains, with technology stocks supporting the market during the morning session. Against the backdrop of movements in U.S. equities and crude oil, as well as tonight’s U.S. CPI release, the Tokyo market expanded its gains into the afternoon session despite trading in a narrow range.
Sanrio released its first-quarter results for the fiscal year ending March 2027, reporting operating profit of ¥22.4 billion, up 11.1% year on year. The global rollout of its characters and the expansion of promotional and licensing activities lifted profit, but the shares fell after results came in slightly below market expectations.
Rakuten Group announced its first-half results for the fiscal year ending December 2026, reporting operating profit of ¥50.4 billion and a net loss of ¥10.9 billion, a reduction in the loss. While improvements continued in logistics and digital transformation-related operations, the company recorded impairment losses, and operating profit fell short of market expectations.
Square Enix Holdings reported first-quarter operating profit of ¥17.0 billion, up 88.6% year on year. Solid sales of new titles and contributions from older releases drove results well above market expectations, prompting early buying.