TOKYO, Nov 16 (Reuters) - Japanese shares rose on Tuesday, as investors scooped up companies with upbeat outlook, although gains were capped by caution ahead of the outcome of the U.S - China summit meeting.
The Nikkei share average gained 0.2% to 29,839.25 by 0221 GMT, after having gained as much as 0.6%. The broader Topix rose 0.4% to 2,056.65.
“After the earnings season is over, the money has been shifted to shares with positive outlook. Investors want to buy companies with strong fundamentals beyond the quarter just ended,” said Ikuo Mitsui, fund manager at Aizawa Securities.
“Investors (now) await the outcome of the online (summit) between the leaders of the U.S. and China. If they could avoid a clash between the two countries, it is likely that ongoing trend of the global economic recovery would continue.”
Both the Nikkei and Topix accelerated their gains around when the news that China’s President Xi Jinping told U.S. President Biden at a virtual meeting that the two countries should strengthen communication and co-exist peacefully, as per a report from Chinese state media.
Toyota Motor led Topix’s gains by rising 2.19%, as the automaker said last week it begin making up for production lost from supply shortages in December to keep its plan of producing 9 million vehicles worldwide during the financial year.
Chip-related Tokyo Electron and Murata Manufacturing rose 1.01% and 3.04%, respectively.
Insurers climbed as U.S. Treasury yields gained, with T&D Holdings rising 3.33% and Dai-ichi Life Holdings 2.5%.
Staffing agency Recruit Holdings, which has built footsteps in the U.S. through employment site Indeed, fell 2.99% even after posting a jump in half-year profit.
(Editing by Uttaresh.V)