Japanese shares track Wall St higher; Toyota bounces back

Ebara

25/08/2021 03:52

TOKYO, Aug 25 (Reuters) - Japanese shares rose for a third
straight session on Wednesday, underpinned by strength on Wall
Street overnight, with buying back beaten down Toyota Motor and
other related stocks.
    The Nikkei share average  .N225  rose 0.35% to 27,829.86 by
0212 GMT, while the broader Topix  .TOPX  also gained 0.35% to
1,941.00.
    All three major U.S. stock indexes ended higher on Tuesday,
with the S&P 500 and the Nasdaq closing at all-time highs.
    "There is no reason to sell Japanese stocks after the S&P
and Nasdaq reached record highs. Investors are buying back auto
and other cyclical shares that were oversold," said Shigetoshi
Kamada, general manager at the research department at Tachibana
Securities.
    Toyota Motor  7203.T , which has shed about 3.35% this
month, rose 2.38%. Its shares fell recently after it announced a
global production cut.  urn:newsml:reuters.com:*:nL1N2PQ0PU
    Nissan Motor  7201.T  rose 2.34%, while Toyota's autoparts
maker Denso  6902.T  advanced 1.84%.
    Steel makers  .ISTEL.T  also climbed, with JFE Holdings 
 5411.T  jumping 2.28% and Nippon Steel  5401.T  rising 1.95%. 
    Airlines  .IAIR.T  added 1.41% on expectations of a recovery
in the industry. 
    However, gains on the indexes were capped by concerns about
the worsening wave of new COVID-19 infections in Japan, said
Yutaka Miura, senior technical analyst at Mizuho Securities. 
    The country is set to expand a state of emergency to eight
more prefectures, taking the total to 21, as a surge in cases
overwhelms its hospitals.  urn:newsml:reuters.com:*:nL1N2PV2FX
    DIC  4631.T  was the worst performer on the index, falling 
2.71%. This was followed by Ebara  6361.T , down 2.21% and
Toyobo  3101.T , which fell 2.06 %.
    

 (Reporting by Junko Fujita; editing by Uttaresh.V)
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