Tokyo: Shares end higher on earnings data

[TOKYO] Japanese stocks ended higher on Tuesday as corporate earnings continued to impress, but gains were limited by worries about the fast-spreading Delta coronavirus variant.

The Nikkei share average ended the day 0.24 per cent higher at 27,888.15, after earlier marking a mid-July peak of 28,128.61.

The broader Topix rallied 0.36 per cent to 1,936.28, but off its session high of 1,950.63.

"After the Nikkei hit 28,100, it seems there was a rush to take profits," said a market participant at an asset management company.

"There are still worries about the Delta variant, so sudden rallies are likely to get reined in." Japan is battling a fifth coronavirus wave, registering 12,073 new infections nationwide on Monday after touching a record high two days earlier.

Hope for additional fiscal support took a knock on Tuesday, with Finance Minister Taro Aso saying the government was not yet considering compiling an extra budget.

Thinner market conditions may have also heightened volatility. Monday was a national holiday in Japan, and the Obon festival runs from Friday until next Monday, although markets will be open both days.

REUTERS