Japanese shares close higher on upbeat earnings, benign Fed
29/07/2021 07:26
TOKYO, July 29 (Reuters) - Japanese shares ended higher on
Thursday, as Nissan Motor and some semiconductor firms delivered
suprisingly strong earnings, while investors took comfort in the
U.S. Federal Reserve's signal that it was in no rush to taper
monetary policy support.
Nikkei share average .N225 was up 0.73% at 27,782.42,
while the broader Topix .TOPX closed 0.41% higher at 1,927.43.
Fed Chair Jerome Powell said the U.S. job market still had
"some ground to cover" before it would be time to pull back from
its economic support, underpinning the market. urn:newsml:reuters.com:*:nL1N2P30V1
"Powell's press conference was well-balanced and left the
Fed with the flexibility to act according to economic data,
fiscal stimulus, and virus developments," John Vail, chief
global strategist at Nikko Asset Management in Tokyo said.
"Financial markets did not react very much to the result,
and the yen remained relatively stable, which is helpful to
Japan's economy and financial markets."
Positive earnings outweighed concerns about the worsening
pandemic, after daily coronavirus cases hit a record high in
Japan and its capital city, Tokyo, which is currently hosting
the Olympics. urn:newsml:reuters.com:*:nL1N2P405J
Nissan Motor 7201.T gained 5.76% after the carmaker
reported a surprise first-quarter operating profit and raised
its outlook, forecasting a return to net profit after two
consecutive years of losses. urn:newsml:reuters.com:*:nL1N2P40HW
Advantest 6857.T jumped 7.33% as the manufacturer of test
machines for chip-making announced bumper earnings and a share
buyback. urn:newsml:reuters.com:*:nXB0JFUJCZ
Screen Holdings 7735.T added 5.81% after the manufacturer
of chip-making machines forecast annual profit slightly above
expectations, citing strong demand.
However, electronic parts maker TDK 6762.T dropped 3.17%
after its quarterly results fell short of market expectations.
urn:newsml:reuters.com:*:nXB1W08VO8
Cyberagent Inc 4785.T tumbled 7.36% as investors locked in
profit following the mobile videogame firm's strong quarterly
results, boosted by sales of a popular game it launched in
February. urn:newsml:reuters.com:*:nXB0DKQP3E
Outside earnings, Sony 6758.T rose 3.46% after the company
said its PlayStation 5 gaming console outstripped sales of its
predecessor since launching last November. urn:newsml:reuters.com:*:nL1N2P404U
Among Topix subsectors, precision machinery .IPRCS.T was
the biggest winner, gaining 1.98%. Electric appliances
.IELEC.T added 1.58%.
(Reporting by Hideyuki Sano; Additional reporting by Kevin
Buckland; Editing by Ramakrishnan M. and Sherry Jacob-Phillips)
((hideyuki.sano@thomsonreuters.com; +81 3 4520 1195;))