TOKYO: Tokyo stocks ended higher on Tuesday on hopes for strong corporate earnings and US President Joe Biden’s upcoming trip to the Middle East.
The benchmark Nikkei 225 index rose 1.20 percent or 381.26 points, at 32,040.29, while the broader Topix index added 0.82 percent, or 18.54 points, to 2,292.08.
Biden will visit Israel in a show of solidarity and an attempt to stop the situation from deteriorating further as Israel moves to launch a ground offensive.
“At least during President Biden’s trip, the market is not expecting the situation to escalate further,” said Chihiro Ota of SMBC Nikko Securities.
“We cannot be optimistic. But the market is breathing a sigh of relief. Yesterday, everyone thought things would grow steadily worse.”
Meanwhile, the market is expected to pay more attention to corporate earnings, with strong figures from US firms already encouraging buyers.
“Because of the Middle East situation, the market hasn’t been able to factor in strong corporate earnings. As the earnings season continues, it’s possible that investors will start paying attention to this, especially if the geopolitical conditions remain relatively calm,” Ota said.
The dollar was at 149.61 yen, nearly flat from 149.63 yen in New York on Monday. Among major shares, SoftBank Group rose 2.65 percent to 6,544 yen, chip-testing equipment maker Advantest added 1.20 percent to 4,403 yen, and Panasonic gained 1.25 percent at 1,585.
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