Tokyo: Nikkei ends higher on upbeat earnings; virus worries linger

[TOKYO] Japan's Nikkei index ended higher on Thursday, underpinned by upbeat earnings from Nippon Yusen, Kikkoman Corp and Hitachi Zozen, although gains were capped by concerns about surging cases of Covid-19.

The tech-heavy Nikkei share average ended the day 0.52 per cent higher, outpacing a 0.39 per cent advance in the broader Topix, as technology shares tracked a firm finish on Wall Street.

The Topix growth index added 0.62 per cent, outstripping the value index's 0.18 per cent increase.

Sea transport was the top subsector on the Topix by far, surging 9.5 per cent.

Nippon Yusen was the Nikkei's best performer, jumping 12.7 per cent. Fellow shippers Mitsui OSK Lines rallied 6.66 per cent and Kawasaki Kisen jumped 6.58 per cent.

Sauce maker Kikkoman surged 9.93 per cent, while infrastructure and energy company Hitachi Zozen rallied 6.81 per cent.

Elsewhere, Rakuten Group advanced 8.38 per cent after the company entered a partnership to build a new mobile network in Germany.

"There continue to be concerns that Japan's stock market is top-heavy, but a string of positive earnings seems to have improved sentiment," said a market player at a domestic securities firm.

The Nikkei has steadily retreated since surging to a multi-decade high above 30,000 in mid-February, and has oscillated in a range of around 27,300-28,000 since mid-July, the start of a fifth wave of coronavirus infections.

Japan reported an unprecedented 14,207 jump in new cases on Tuesday, led by a record 4,166 infections for Olympics-host Tokyo.

Disappointing financial results from Ricoh also dragged the index on Thursday, tumbling 11.46 per cent.

REUTERS