TOKYO: Japanese stocks closed higher on Wednesday, tracking overnight gains on Wall Street following strong US corporate earnings.

The Nikkei 225 share average rose 0.37%, staying well above the key psychological level of 27,000 throughout the day, with no sign of the volatile trading seen in the previous session.

It closed at 27,257.38. The broader Topix index rose 0.19%. “Japanese stocks have been fairly steady compared to US stocks,” said Seiji Arai, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

“Stocks have been performing well in Japan due to the exchange rate. So, even if earnings decline it may not have a big impact on financial results, which is why they can stay firm,” he said.

All three major Wall Street indexes made gains overnight after better-than-expected results from Goldman Sachs Group Inc and Lockheed Martin. Of the Nikkei’s 225 constituents, 143 advanced, 77 declined, and five traded flat.

The Nikkei’s best performer was SoftBank Group Corp , which rose 3.72%.

Uniqlo parent Fast Retailing Co Ltd , another major contributor to the index, rose 1.13%.

Japanese stocks end higher as Wall Street, US futures rally

Utilities were up 2.15%, by far the most of any individual sector.

Tokyo Electric Power Company gained 2.73% and Tokyo Gas Co Ltd added 2.42%.

Credit Saison Co Ltd led losses, dropping 7.07%, after it emerged that City Index Eleventh, a fund backed by activist investor Yoshiaki Murakami, had reduced its holdings in the credit services firm from 5.06% to 3.98%.

Stocks in Apple suppliers Murata Manufacturing Co Ltd, Ibiden Co Ltd, and TDK Corp all fell after a report that the US tech giant is cutting iPhone 14 Plus orders weeks after the new model went on sale.