7:00 PM Tokyo – Stocks in Tokyo closed higher but not without strong undercurrent of weaker than expected earnings. Toyota Motor was the most actively traded stock after it reported rising U.S. sales. Tokyo Electric Power jumped narrower quarterly loss.

At close market indexes traded higher but investors focused on earnings for the third day in a row ahead of key rate setting meetings in Europe.

Investors have not been forgiving to companies that miss earnings outlook and at least 45 companies have missed the estimates of the 94 companies in the Nikkei 225 index according to the data compiled by ticker.com.

Japanese exporters of automobiles, electronics and ocean freight companies linked to Europe after suffering from decline in revenues and margins and growing uncertainties in Spain and Italy.

The Nikkei 225 Stock Average rose 11.30 to 8,653.18 and the broader Topix index inched up 3.20 to 732.98.

In trading, turnover declined to 1.63 billion shares from 1.58 billion shares on Wednesday.

July U.S. Auto Sales

Toyota Motor sales in July gained 26.1% to 164,898 from 130,802 in the same period a year earlier. Sales of the cars advanced 32% to 89,820 from 68,062 and light trucks increased 19.7% to 75,078 from 62,740 a year ago.

Honda sales in the month surged 45.3% to 116,944 from 80,502 a year ago. For the year so far, sales increased 18.9% to 817,926 from 687,944. Sales of cars in the month soared 53.1% to 64,788 from 42,321 and sales of the light trucks increased 36.6% to 52,156 compared to 38,181 a year ago.

Nissan Motor Company vehicles sales in the month increased 16.2% to 98,341 from 84,601 a year ago. For the year so far, sales increased 14.7% to 676,062 from 589,574. July cars sales gained 17.8% and sales of the light trucks increased 13.7% from a year ago.

Mitsubishi Motors vehicles July sales declined 47.4% to 4,194 compared with 7,972 units in the month of last year.

Sales for Mazda fell 7% to 19,318 compared to 20,783 in the year ago.

Subaru of America Inc sales in the month increased 15.9% to 25,183 from 21,730 a year ago. For the year so far, sales soared 23.2% to 189,487 from 153,779.

Sales of cars in the month surged 21.6% to 18,579 from 15,277 and sales of the light trucks rose 2.3% to 6,604 compared to 6,453 a year ago.

Stock Movers

Automakers led the most active stocks after the release of July auto sales in the U.S. Toyota, the most actively traded stock on the main board said U.S. sales in the year to July increased 28% from a year ago to 1.21 million units, ahead of its target of 15% for the full year.

Toyota Motor increased 40 yen to 3,045 yen and Honda Motor Co. slipped 11 yen to 2,394 yen. Nissan Motor Co Ltd gained 17 yen to 750 yen.

Canon Inc gained 0.9% to 2,693 yen, Seiko Epson Corp increased 1.1% to 535 yen and Ricoh Co Ltd added 3.7% to 593 yen.

Seiko Epson dropped to a record low after it agreed to pay $150 million to Motorola Mobility and settle charges linked to lawsuit seeking damages arising from the price fixing of liquid crystal displays. Seiko also guided income in the year is expected to fall to 5 billion yen from the previous estimate of 14 billion yen.

Industrial robots maker Nabtesco Corp declined 3% or 46 yen to 1,457 yen after it offered weak outlook. Teijin Ltd dropped 9% to 207 yen after the fiber maker reported operating profit declined 73% and lowered its outlook for the year by 19%.

Sony Corp gained 23 yen to 964 yen and Panasonic Corp rose 2 yen to 586 yen. Toshiba fell 2 yen to 262 yen. Nikon slipped 7 yen to 2,156 yen.