Japanese shares gain on upbeat corporate outlook, U.S.-China talks in focus

Murata Manufacturing Co

16/11/2021 02:51

By Junko Fujita
    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  .N225  gained 0.2% to 29,839.25 by
0221 GMT, after having gained as much as 0.6%.  The broader
Topix  .TOPX  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.  urn:newsml:reuters.com:*:nB9N2Q202C
    Toyota Motor  7203.T  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.  urn:newsml:reuters.com:*:nFWN2S22GF
    Chip-related Tokyo Electron  8035.T  and Murata
Manufacturing  6981.T  rose 1.01% and 3.04%, respectively. 
    Insurers climbed as U.S. Treasury yields gained, with T&D
Holdings  8795.T  rising 3.33% and Dai-ichi Life Holdings 
 8750.T  2.5%.
    Staffing agency Recruit Holdings  6098.T , which has built
footsteps in the U.S. through employment site Indeed, fell 2.99%
even after posting a jump in half-year profit.  urn:newsml:reuters.com:*:nXB0ODPWAJ

 (Editing by Uttaresh.V)
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