TOKYO: Tokyo’s benchmark index rose for the 11th straight session, marking another fresh 21-year high on Tuesday, as upbeat Japanese corporate earnings outweighed concerns about overheating.
The Nikkei 225 gained 0.38 percent, or 80.56 points, to end at 21,336.12 — marking the longest winning streak in more than two years.
The broader Topix index rose 0.24 percent, or 4.19 points, to 1,723.37.
But worries about profit-taking after so many gains held the market back.
Investors “cannot shrug off a sense of caution over the pace of gains”, Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.
But Japan’s corporate earnings season, which gets into full swing next week, will support shares, said Nobuyuki Kawamata, chief analyst at Tokai Tokyo Research Institute.
“Rallies in US shares are also providing a tailwind for Japanese shares,” he added.
Wall Street jumped to fresh records Monday, boosted by bank shares that gained on expectations the Federal Reserve will again increase interest rates this year.
“At some point, players will cash in on the recent gains, but the current buying sentiment is expected to remain strong (for) the time being,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.
Kobe Steel was up 3.14 percent at 853 yen, rebounding for a second day after the stock lost more than 40 percent of its value since the start of last week in the wake of a quality data scandal.
Kansai Electric was up 0.69 percent at 1,587.5 yen after a report said it will decommission two of its old nuclear reactors.
But Japanese banks turned down after initial gains. Mitsubishi UFJ slipped 0.40 percent to end at 729.7 yen while rival Sumitomo Mitsui Financial fell 0.25 percent to 4,386 yen.
The dollar fetched 112.18 yen against 112.21 yen in New York.
Source: Brecorder.com
