TOKYO: Japan’s Nikkei share average rose on Tuesday, buoyed by the gains in US stocks overnight, although caution prevailed as the peak for the domestic earnings season approaches.
The top-performing stocks were driven by financial results and there was little in terms of larger themes driving markets, although a weaker yen supported automakers.
The Nikkei added 0.38% to end the day at 32,377.29 after a quiet afternoon session. Of the Nikkei’s 225 components, 164 rose, 58 fell and three were flat.
The broader Topix gained 0.34% to 2,291. “It would be quite difficult right now to very actively push Japanese stocks higher,” with peak earnings season on Thursday and the markets closed on Friday for a holiday, said Maki Sawada, a strategist at Nomura Securities.
In the near term, the Nikkei is likely to trade between the “firm floor” of 32,000 and 33,000, she said.
On Tuesday, food and drug maker Meiji Holdings surged 10.41% after reporting earnings in the afternoon session. It outpaced engineering company Comsys, which had led early gains and finished with a 9% gain after its own financial results.
Tokyo stocks tumble for second straight day
More than 400 companies report earnings on Wednesday, with that number more than doubling to around 850 on Thursday. Nissan gained 1.06% and Honda advanced 1.2% as a weakening yen boosted the value of overseas revenue. Toyota was a notable outlier, declining 0.84%.
Chip-testing equipment maker Advantest was the Nikkei’s biggest drag, shaving off 53 index points as it slumped 4.21%.
Shares in tech company Toshiba rose 0.57% to 4,610 yen, bringing the stock very close to private equity firm Japan Industrial Partners’ 4,620 yen-per-share tender offer, which was launched on Tuesday.
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