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Japan's Nikkei erases early gains over earnings worries

Japan's Nikkei erases early gains over earnings worries

Reuters · 07/28/2022 02:40
Japan's Nikkei erases early gains over earnings worries

- Japan's Nikkei index erased most of its early gains to edge higher on Thursday, weighed down by concerns over corporate outlook.

The Nikkei share average .N225 rose 0.36% to 27,815.48, after advancing 1.1% to cross the 28,000 mark for the first time since June 10.

The broader Topix .TOPX inched up 0.16% at 1,948.85.

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 2.24%, extending losses to a fourth session. Even though the company raised its profit outlook on Tuesday, investors were disappointed that currency was the only driver for the forecast raise, said Kamada.

Mitsubishi Motors MMTOF surged 10.91% 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 3.67% and 2.43%, respectively.

Staffing agency Recruit Holdings RCRRF rose 4.37 % to be the best performer among the top 30 core Topix .

Toyota Motor Corp TM lost 2.03% and was the worst performer among the top 30 Topix , followed by air-conditioning maker Daikin Industries DKILY which lost 1.55%.

(Reporting by Junko Fujita; Editing by Vinay Dwivedi)

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