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Japan's Nikkei cut early gains on worries over corporate earnings

Japan's Nikkei cut early gains on worries over corporate earnings

Reuters · 07/27/2022 23:34
Japan's Nikkei cut early gains on worries over corporate earnings

- Japan's Nikkei index edged higher on Thursday, giving up most of its early gains driven by a strong Wall Street session overnight as investors worried about domestic corporate earnings.

The Nikkei share average .N225 had risen 0.32% to 27,804.21 by the midday break. Earlier in the day, it climbed 1.1% to cross the 28,000 mark for the first time since June 10. The broader Topix .TOPX inched up 0.05% to 1,946.82.

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 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 NDEKF fell 1.94%, extending losses to a fourth session. Even though the company raised its profit outlook on Tuesday, investors were disappointed the currency was the only driver, said Kamada.

Mitsubishi Motors MMTOF surged 12.73% and was headed for its biggest one-day gain in six years after quarterly profit almost trebled and the automaker lifted its full-year forecast.

Energy-related shares were strong, with the utility sector .IEPNG.T and oil explorers .IMING.T rising 3.79% and 2.76% respectively.

There were 96 advancers on the Nikkei index against 119 decliners.

The volume of shares traded on the Tokyo Stock Exchange's main board .TOPX was 0.6 billion, compared with the average of 1.19 billion in the past 30 days.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)

((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters Messaging:junko.fujita.reuters.com@reuters.;))