Roundup: Japan's Nikkei ends higher as chip stocks gain, earnings eyed

0 Comment(s)Print E-mail Xinhua, April 25, 2023
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TOKYO, April 25 (Xinhua) -- Japan's benchmark Nikkei stock index closed fractionally higher Tuesday, as chip-oriented issues gained on hopes for increased production amid some caution ahead of earnings and outlook reports from domestic and overseas firms this week.

The 225-issue Nikkei Stock Average edged up 26.55 points, or 0.09 percent, from Monday to close the day at 28,620.07.

The broader Topix index, meanwhile, added 4.81 points, or 0.24 percent, to finish at 2,042.15.

Local brokers said the market mood was bolstered in part following news the previous day the government here plans to expand subsidies to chipmaker Rapidus Corp. to build a new plant in northern Japan to boost output.

Adding to a relatively upbeat mood, electric motor maker Nidec Corp. reported solid earnings a day earlier, saying it expects operating profit for the year through March 2024 to more than double that of the previous year, raising hopes for other firms' upbeat earnings.

"Nidec's stronger-than-expected forecast helped boost other companies in the manufacturing industry," Toshikazu Horiuchi, an equity strategist at IwaiCosmo Securities Co., was quoted as saying.

In addition, as earnings season swings into gear this week, with a number of domestic and U.S. companies set to release their reports, dealers here said that investors were keenly yet cautiously eyeing results and guidance from U.S. giants Alphabet Inc. and Inc.

Strategists here also noted that exporter issues gained as the yen retreated against the euro to an eight-year low on beliefs the European Central Bank (ECB) will further raise its interest rates, while the Bank of Japan (BOJ) is widely believed to stay pat on its ultra-low policy this week.

"Hawkish remarks by some senior ECB officials added to the momentum, while the yen weakened slightly on speculation that the BOJ will maintain its monetary easing policy this week," Yukio Ishizuki, senior foreign exchange strategist at Daiwa Securities Co., was quoted as saying.

Nidec gained on its upbeat profit outlook, rising 0.9 percent, while chip testing equipment manufacturer Advantest Corp. rose 1 percent and Nikkei heavyweight Tokyo Electron gained 0.2 percent on hopes for increased output.

Mitsubishi Electric, meanwhile, jumped 3.3 percent after announcing plans Monday to restructure its struggling car equipment business.

Daiwa House Industry Co. was another notable winner, climbing 2.7 percent after lifting its profit outlook.

By the close of play, precision instrument, electric appliance, and transportation equipment-linked shares comprised those that gained the most.

The turnover on the Prime Market on the second trading day of the week came to 2,347.20 billion yen (17.49 billion U.S. dollars). Enditem

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