Nikkei rises on Evergrande debt payment; election, corporate outlook weigh

Hoya

22/10/2021 03:40

TOKYO, Oct 22 (Reuters) - Japan's Nikkei rose on Friday,
recouping early losses, after embattled developer China
Evergrande Group made a bond payment, while caution ahead of the
nation's general election and corporate earnings season capped
gains.
     The Nikkei share average  .N225  rose 0.69% to 28,905.86 by
0203 GMT, snapping a 0.56% drop earlier in the session. But the
index is set to lose 0.55% for the week. The broader Topix
 .TOPX  rose 0.38% to 2,008.34.
     The Nikkei added its gains after news that China Evergrande
Group  3333.HK  wired funds to a trustee account on Thursday for
a bond interest payment due Sept. 23.  urn:newsml:reuters.com:*:nL1N2RI03N  
    "The news on Evergrande has helped reduce uncertainties
about the debt repayment issues of Evergrande. This is not going
to solve the entire issues but at least this was a relief," said
Takatoshi Itoshima, strategist at Pictet Asset Management.
    Technology shares led the gains, with chip-making equipment
makers Tokyo Electron  8035.T  and Screen Holdings  7735.T 
jumping 4.53% and 5.09%, respectively, while camera maker Nikon
 7731.T  rose 3.85%. 
    Chip-making equipment maker Disco  6146.T  rose 3.49% after
it posted a 71% jump in its first-half operating profit.
 urn:newsml:reuters.com:*:nXB0PJEJPT 
    Otherwise, investors struggled to find reasons for active
trading. 
    "Investors have little reasons to buy or sell before major
companies start reporting their earnings next week," said Jun
Morita, general manager of the research department at Chibagin
Asset Management.
    "Also, it is sceptical that the LDP (Liberal Democratic
Party) will enjoy a landslide victory at the coming election."  
     The LDP could lose some seats in the Oct. 31 lower house
election, but the ruling coalition it forms with the Komeito
party is expected to maintain a majority, local media had
reported.  urn:newsml:reuters.com:*:nL1N2RH04E
    Mizuho Financial Group  8411.T , down 1.16%, lost the most
among top 30 core Topix names, followed by mobile phone operator
KDDI Corp  9433.T , which fell 0.78%.


 (Reporting by Junko Fujita; Editing by Anil D'Silva)
 ((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters
Messaging:junko.fujita.reuters.com@reuters.net;))