Roundup: Tokyo stocks end higher on consecutive record highs of U.S. stock indexes

0 Comment(s)Print E-mail Xinhua, July 27, 2021
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TOKYO, July 27 (Xinhua) -- Tokyo stocks finished higher on Tuesday as the record close of key U.S. stock indexes for two consecutive trading days overnight offset continued concern about a rapid surge in COVID-19 cases in Japan.

The 225-issue Nikkei Stock Average finished 136.93 points, or 0.49 percent higher from Monday at 27,970.22.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange ended 12.42 points, or 0.64 percent, higher at 1,938.04.

Trading volume on the main section decreased to 938.97 million shares from Monday's 966.81 million shares.

As positive earnings reports of U.S. stocks brought hopes for economic recovery from the COVID-19 pandemic, the Dow Jones Industrial Average and the technology-heavy Nasdaq index rose to record highs for the second straight day. Tokyo stocks opened higher in response.

However, Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co, said, "a wait-and-see attitude prevailed on the market, limiting advances ahead of earnings reports in the upcoming days by major Japanese companies."

He said although some firms have recently upgraded their earnings forecasts for the first quarter ending last month, their stocks still underperformed because the upgraded earnings failed to meet investors' expectations and the surge of COVID-19 infections dragged down the entire market.

Tokyo, currently hosting the Olympics while under a COVID-19 state of emergency, reported 1,429 new daily COVID-19 infections on Monday, exceeding 1,000 cases for the seventh day in a row.

By the close of play, air transportation, nonferrous metal, and iron and steel stocks headed the increase. Gainers outnumbered declining ones 1,571 to 536 on the First Section, while 84 ended unchanged.

Air transportations were lifted by expectations of travel demand recovery following Japanese municipalities began accepting applications Monday for vaccine passports for people who have been fully inoculated against COVID-19. In addition, positive earnings at U.S. airlines also supported the increase of this industry.

ANA Holdings and Japan Airlines both increased 3.3 percent.

The rise in commodity prices in the previous day due to the expectations of economic recovery from the pandemic supported iron and steel stocks, brokers said.

Nippon Steel closed 1.8 percent higher, Kobe Steel finished up 1.3 percent, and JFE Holdings gained 2.3 percent. Enditem

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