Economic news

Japanese Shares Rise as Wall St Rally Boosts Bargain Hunting

TOKYO, Feb 2 (Reuters) - Japanese shares closed higher on Wednesday, as an overnight Wall Street rally improved risk appetite, prompting investors to scoop up stocks that were sold off last month as well as those with robust outlook.

The Nikkei share average gained 1.68% to end at 27,533.60, while the broader Topix advanced 2.14% to 1,936.56.

All three Wall Street benchmarks advanced overnight, as investors digested strong earnings from big-name U.S. companies against mixed economic data and inflation worries.

"Investors realised that they were too risk sensitive and bought back stocks that were oversold," said Ikuo Mitsui, fund manager at Aizawa Securities.

"Also, investors have become more responsive to positive news so they bought stocks with robust earnings. But the market has risen to the level where investors may turn cautious and start selling."

Keyence jumped 6.18%, after the electronic application equipment maker posted a record operating profit for nine months through December.

Sony Group rose 4.93% ahead of its earnings report after the market close, while chip-related stocks Tokyo Electron and Shin-Etsu Chemical rose 2.04% and 4.45%, respectively.

Airlines jumped 4.99%, leading gains among the exchange's 33 industry subindexes. ANA Holdings rose 6.21%, after the airliner surprised with a small third-quarter operating profit. 

Isetan Mitsukoshi Holdings rose 5.52%, as the department store operator raised its annual net profit outlook.

Aisin rose 4% as the supplier of Toyota Motor said its nine-month net profit more than doubled. .

Another Toyota supplier Denso snapped early gains to end 0.91% lower after it cut its annual operating profit forecast.

There were 199 advancers on the Nikkei index against 22 decliners.

The volume of shares traded on the Tokyo Stock Exchange's main board was 1.37 billion, compared to the average of 1.15 billion in the past 30 days.

Reporting by Junko Fujita; Editing by Rashmi Aich

Source: Reuters

To leave a comment you must or Join us

More news

Back to economic news list

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree