Japan's Nikkei erases early gains over earnings worries

Daikin Industries

28/07/2022 07:40

TOKYO, July 28 (Reuters) - Japan's Nikkei index erased most
of its early gains to edge higher on Thursday, weighed down by
concerns over corporate outlook.
    The Nikkei share average  .N225  rose 0.36% to 27,815.48,
after advancing 1.1% to cross the 28,000 mark for the first time
since June 10.
    The broader Topix  .TOPX  inched up 0.16% at 1,948.85.
    The Nasdaq jumped more than 4% on Wednesday in its biggest
daily percentage gain since April 2020, as the Federal Reserve
raised interest rates as expected and comments by Fed Chairman
Jerome Powell eased some worries about the pace of rate hikes.
 .N 
    "The Nikkei rose too much earlier in the session and that
was just a reaction to the overnight strong performance of Wall
Street," said Shigetoshi Kamada, general manager at the research
department of Tachibana Securities.
    "Soon investors realised that they could not be optimistic
about domestic corporate outlook. Some results were good, but
when looking into details, the weaker yen tended to be the only
positive factor."
    Shares of Nitto Denko  6988.T  fell 2.24%, extending losses
to a fourth session. Even though the company raised its profit
outlook on Tuesday, investors were disappointed that currency
was the only driver for the forecast raise, said Kamada.  
    Mitsubishi Motors  7211.T  surged 10.91% after quarterly
profit almost trebled and the automaker lifted its full-year
forecast.
 urn:newsml:reuters.com:*:nL1N2Z903D
    Energy-related shares were strong, with the utility sector
 .IEPNG.T  and oil explorers  .IMING.T  rising 3.67% and 2.43%,
respectively. 
    Staffing agency Recruit Holdings  6098.T  rose 4.37 % to be
the best performer among the top 30 core Topix names. 
    Toyota Motor Corp  7203.T  lost 2.03% and was the worst
performer among the top 30 Topix names, followed by
air-conditioning maker Daikin Industries  6367.T  which lost
1.55%.
 
    

 (Reporting by Junko Fujita; Editing by Vinay Dwivedi)
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