Market

Topix closes at near one-month high as Japansese investors await earnings

TOKYO: Japanese stocks gained on Tuesday, with the broad Topix index hitting a near one-month high, after markets recovered from last week’s sell-off and awaited a slew of corporate earnings for a fresh readout on the country’s economic health.

Nikkei share average closed 0.52% higher at 28,718.24, while the broader Topix gained 0.73% to 1,967.64, its highest close since June 16.

Both indexes have quickly recovered from last week’s tumble, which many investors attributed to concerns over Delta variant as well as big selling from Exchange Traded Funds (ETFs) related to their dividend payment.

U.S. earnings season kicked off this week and many Japanese companies are expected to announce their quarterly numbers from this month-end until mid-August, making earnings the main focus of the market.

A broad range of stocks gained, with all but four of the Tokyo Stock Exchange‘s 33 industry sub-indexes trading in the black.

Cyclical, value-oriented shares led the gains, including shippers, securities brokerages, and insurers.

Value-oriented shares outperformed with gains of 1.1%, compared with a 0.4% rise in growth shares.

“I am a bit cautious about the outlook, though. Growth shares are expensive and it will take some time before their earnings will catch up with expectations. On the other hand, value shares have risen over the past seven months or so and looking at the past their rally has not lasted longer than that,” Takenori Yamamoto, portfolio manager at Norinchukin Zenkyoren Asset Management said.

Tama Home soared 17.6% to its record high after the home builder posted upbeat earnings due to stronger post-pandemic demand.

Cosmos Pharmaceutical gained 9.3% after the drugstore chain operator posted forecast-beating earnings.

Kakuyasu dropped 3.3% after the alcohol retailer withdrew its earnings outlook for the current year through March 2022, citing uncertainties due to the government’s renewed bans on alcohol being served in restaurants.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button