TOKYO: Japan’s Nikkei share average rose on Wednesday, continuing its rebound from a three-week low, as it tracked overnight gains on Wall Street, while Beijing’s 1 trillion yuan ($136.8 billion) fiscal package provided an additional tailwind.
The Nikkei ended the day up 0.67% at 31,269.92, but couldn’t maintain the momentum from the morning session when it rose 1.3% to 31,466.92, the strongest level since Thursday.
The stock benchmark had dipped as low as 30,551.67 in the previous session, a level last seen on Oct. 4. Of the Nikkei’s 225 components, 158 gained on Wednesday versus 67 that fell.
The broader Topix rose 0.61%. An index of value shares gained 0.78%, outpacing a 0.41% increase for growth stocks.
“The market is looking to test the recent highs, that’s the situation we find ourselves in currently,” said Kazuo Kamitani, a strategist at Nomura Securities.
The Nikkei could rise to this month’s closing high of 32,494.66 by the start of November, although a push beyond that would require some degree of expectations for robust earnings results, Kamitani added.
The Japanese earnings season has been underway since around the start of the month, but accelerates next week and peaks in mid-November. Industrial machinery maker IHI Corp was the Nikkei’s top performer on Wednesday, jumping 4.61%.
Tokyo shares end higher on see-saw day
Chip-making equipment manufacturer Screen Holdings was next, advancing 3.53%. Bigger peer Tokyo Electron was the biggest points gainer, contributing 34.5 points with a 1.72% rise.
Chip-testing equipment maker Advantest was another strong performer, gaining 2.89%.
Another chip-making machinery maker, Kokusai Electric made its trading debut, surging 27.7% over its IPO price.
Leading decliners, motor maker Nidec lost 2.75%, extending its drop to a second session after its financial results disappointed investors.
Mitsubishi Motors followed with a 2.12% decline.
Truck maker Isuzu Motors slid 1.56%.
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