(Fixes typo in fifth paragraph)
By Ayai Tomisawa
TOKYO, May 10 (Reuters) - 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 percent 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 percent to hit fresh three-month highs.
The shares rose 3.8 percent 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 raised Toyota’s target price to 9,300 yen from 8,500 yen, 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 percent.
Mitsubishi Motors Corp jumped 10 percent after it said operating profit was expected to rise 12 percent in the current financial year, driven by higher vehicle sales in Asia.
Isetan Mitsukoshi Holdings soared 9.3 percent after the department store operator said its operating profit will likely rise 18.8 percent to 29 billion Japanese yen ($264.48 million) in the year ending March 2019. It also expects a net profit of 13 billion yen, compared to 900 million yen in net loss in the previous year.
The broader Topix was flat at 1,772.64. ($1 = 109.6500 yen) (Reporting by Ayai Tomisawa Editing by Eric Meijer)