TOKYO: Japanese stocks extended gains on Tuesday, though performances were modest with investors reluctant to make big moves ahead of this week’s Bank of Japan policy meeting, despite lowered estimates for aggressive tightening by the US Federal Reserve.
The Nikkei share average started trade 0.8% higher to break through the psychological barrier of 27,000 before finishing at 26,961.68 as markets closed up 0.65% for the day.
The broader Topix gained 0.54%. “The level 27,000 seems to have become the key barrier,” said a market participant at a domestic securities firm.
“We’d like to see new market factors to help decisively break through it.”
Of the Nikkei’s 225 components, 171 made gains, 52 made losses, and two traded flat. European stock index futures were down ahead of markets opening, with FTSE 100 futures dropping 0.38% and Euro STOXX 50 dipping 0.60%.
Shares of Japanese heavy industries were some of the strong performers, buoyed by a report over the weekend that Prime Minister Fumio Kishida’s government won’t set a ceiling on defence spending in the next annual budget.
Kawasaki Heavy Industries Ltd rose 5.22%, and Mitsubishi Heavy Industries Ltd was up 2.5%.
Even as shares of Apple Inc made losses overnight following a Bloomberg report that the company planned to slow hiring over the next year, Japanese suppliers didn’t appear to be broadly affected.
Sony Group Corp, Apple’s primary image sensor supplier, gained 2.32%.
Components makers Murata Manufacturing Co Ltd and Taiyo Yuden Co Ltd were up 0.24% and 1.1%, respectively.
Utilities companies weighed in the Nikkei, with the sector down 1.36% overall.
Tokyo stocks close higher on bargain-hunting, cheap yen
Kansai Electric Power Co Inc lost 2.78%, and Tokyo Electric Power Co Holdings Inc was down 2.38%.
Video game maker Nintendo fell 2.50% to wipe out gains made on Friday, when its share price jumped 2.33% on the news that it was buying an animation studio.
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