Japan shares inch higher, corporate outlook worries cap gains

TOKYO: Japanese shares rose on Wednesday, led by technology stocks, although gains were capped by concerns about corporate outlook, while investors awaited a decision by the US Federal Reserve and President Joe Biden's address to Congress.

The Nikkei share average inched up 0.29% to 29,075.62 by 0208 GMT, while the broader Topix edged up 0.34% to 1,910.27.

"There is a growing concern among investors that corporate outlook may not meet their high expectations.

That has been proven by recent fall in shares of some renowned companies which flagged strong outlook," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

"It is hard for investors to make any move today ahead of several significant events in Japan and the United States."

Japan is in the middle of the corporate earnings season, with Sony Group, Shin-Etsu Chemical, TDK being among major firms reporting their outlook after the market closes on Wednesday.

So far, a slew of companies, including Nidec and Canon, have failed to impress investors despite relatively strong earnings.

Technology firms such as robot maker Fanuc jumped 2.48%, while chip-making equipment maker Tokyo Electron added 1.06%.

Nomura Holdings rose 1.78% after Japan's largest brokerage said it would book $2.9 billion worth of pain from the collapse of US investment fund Archegos.

Fuji Electric gained 10.92%, making it the biggest percentage gainer on the Nikkei, followed by Fujikura gaining 5.58% and Tokyu Fudosan Holdings, which rose 4.57%.

The largest percentage loser on the index was Tokuyama , down 7.95%, followed by Kyocera losing 5.76% and Nippon Yusen, which fell 3.59 %.

The volume of shares traded on the Tokyo Stock Exchange's main board was 0.49 billion, compared with the average of 1.21 billion in the past 30 days.