Japan’s Nikkei rises as investors pick up firms with positive earnings

TOKYO: Japan’s Nikkei index ended higher on Wednesday, rebounding from the previous session’s losses, as investors scooped up shares of Daikin Industries and other firms that reported robust earnings.

The Nikkei share average gained 0.53% to 27,741.90, after shedding 1.42% on Tuesday in its biggest daily loss in three weeks. The broader Topix edged up 0.27% to 1,930.77.

“Investors looked for stocks with positive earnings results and that gave a boost to the Japanese market,” said Maki Sawada, a strategist at Nomura Securities. “Also, they bought stocks after a drop in the previous session.” Risk sentiment was helped by US House Speaker Nancy Pelosi’s safe arrival in Taiwan, despite threats of action from China, which views the island as a breakaway province.

In Japan, Daikin Industries jumped 3.96% as the air-conditioning systems maker lifted its outlook, while West Japan Railway rose 3.47% after posting a quarterly operating profit.

Sanrio surged 12.85% after the owner of Hello Kitty brand raised its outlook and dividend payout forecast.

Uniqlo clothing shop owner Fast Retailing rose 1.5% and was the biggest boost to the Nikkei.

Chip equipment maker Tokyo Electron rose 0.96% and technology investor SoftBank Group gained 0.84%.

Game maker Nintendo Co lost 1.9% and was the worst performer among the top 30 core Topix names, followed by Mitsubishi UFJ Financial Group Inc, losing 1.81%.

There were 108 advancers on the Nikkei index against 111 decliners.

The volume of shares traded on the Tokyo Stock Exchange’s main board was 1.22 billion, compared to the average of 1.18 billion in the past 30 days.