TOKYO: Japanese shares rose on Tuesday, tracking Wall Street gains overnight, but concerns over the impact of China’s COVID-19 lockdown on domestic companies capped their rise.
By 0147 GMT, the Nikkei share average had risen 0.4% to 26,692.10.
The broader Topix had gained 0.1% to 1,878.38, after briefly entering negative territory. Shanghai’s COVID-19 lockdown misery dragged into a fourth week, while orders for mass testing in Beijing’s biggest district sparked fears that the Chinese capital could be destined for a similar fate.
“Investors were cautious about the impact of possible China’s economic slowdown on Japanese companies, as now there is a possibility that Beijing could be locked down,” said Tomoichiro Kubota, senior market analyst at Matsui Securities.
“Today’s market rose thanks to the gains on Wall Street and falling US Treasury yields.”
Technology investor SoftBank Group provided the biggest boost to the Nikkei, rising 3.93%, followed by chip-making equipment maker Tokyo Electron, rising 0.85%.
Fujitsu rose 2.38% after a report said the computer maker was weighing a sale of it scanning business to office equipment maker Ricoh, which fell 1.18%.
Canon Marketing Japan jumped 7.71% after the sales arm of camera maker Canon raised its profit outlook.
Japanese shares track Wall Street weakness, heavyweights drop
Sumitomo Metal Mining tumbled 8.35%, and was the biggest loser on the Nikkei, after the miner and smelter said it would discontinue a long-running feasibility study on a nickel processing plant project in Pomalaa, Indonesia.
Share trade volume on the Tokyo Stock Exchange’s main board was 0.42 billion, compared to past 30-day average of 1.22 billion.
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