TOKYO: Tokyo’s benchmark stock index closed at a quarter-century high on Tuesday, rising by 1.73 percent amid eased concerns over geopolitical risks and on expectations for sound corporate earnings.
The Nikkei 225 gained 389.25 points to close at 22,937.60, its highest level since January 1992.
The broader Topix index advanced 1.15 percent, or 20.63 points, to 1,813.29.
“Foreign investors are seen actively buying on expectations for brisk corporate earnings,” Hiroaki Hiwata, strategist at Toyo Securities, told AFP.
“Investor sentiment has been supported by political stability in Japan after a general election” last month that resulted in a comfortable victory for Prime Minister Shinzo Abe, he added.
Analysts also pointed to investor relief that there has been no significant news to upset the market during US President Donald Trump’s tour in Asia amid lingering tension over North Korea.
SoftBank, which fell in early trading, closed 1.15 percent higher at 10,060 yen after it said its net profit fell for the first half of the fiscal year.
This added to downward pressure on the stock following a weekend announcement confirming SoftBank’s US unit Sprint and T-Mobile had called off merger talks.
Chip-related shares were broadly higher after Broadcom launched a $130-billion unsolicited bid for rival chip manufacturer Qualcomm in a cash and stock offer.
Renesas Electronics climbed 5.11 percent to 1,499 yen while chipmaker Rohm gained 0.43 percent to 11,460 yen.
Nissan fell 0.22 percent to 1,111 yen after the automaker said it would resume domestic production, which was suspended following an inspection scandal.
Toyota edged up 0.19 percent to 7,183 yen ahead of its earnings report. After the market close, Toyota said it has revised its full-year net profit forecast higher thanks to a cheaper yen and cost-cutting efforts.
Mitsubishi Motors closed up 0.77 percent at 905 yen after it said it had returned to profit in the six months to September thanks to a 9.6-percent rise in sales.
Source: Brecorder.com
