TOKYO: Japan’s Nikkei share average rose on Tuesday, buoyed by Wall Street’s rally overnight, although concerns about big tech earnings and tensions in the Middle East capped gains.
The Nikkei ended the day up 0.3% at 37,552.16. notching a second consecutive session of gains after slumping to a 10-week low on Friday.
Trading was choppy in Tuesday’s morning session, with the index gaining 1% before retreating briefly into negative territory. However, the afternoon was calm with the index tracking mainly sideways.
The broader Topix finished up 0.14%.
All three of the main U.S. stock benchmarks rallied on Monday, rebounding from big losses the previous week.
However, Tesla shares dropped 3.4% following price cuts in a number of its major markets. The electric vehicle maker is one of the so-called Magnificent Seven group of tech giants that will report earnings this week, along with Meta Platforms, Alphabet and Microsoft.
Japan’s Nikkei ends 1% higher after sharp fall; chip-related shares weigh
“In terms of recent trends, Japan’s stock market appears to be heavily influenced by overseas factors,” said Shoki Omori, chief Japan desk strategist at Mizuho Securities.
“This week, not only will the Magnificent Seven release their earnings, but other major companies will as well,” he said. “I think earnings are going to come out on the weaker side, which could push the Nikkei down to 37,000.”
The Nikkei rose to an all-time high of 41,087.75 a month ago before retreating sharply to as low as 36,733.06 by Friday.
Among notable chip-sector names, Tokyo Electron edged up 0.15% and Advantest reverse early gains to fall 0.46%. Lasertec lost 1.94% and Disco dropped 2.56%.
Utilities were standout winners, with Osaka Gas jumping 4.84% to be the Nikkei’s biggest percentage gainer after revising up its earnings forecast. Tokyo Gas climbed 2.79%.
Comments