Tokyo: Shares end higher on overnight Wall Street gains, strong earnings

[TOKYO] Japanese shares ended higher on Wednesday (Feb 9) following an overnight tech-led rally on the Wall Street, while investors buying stocks of companies that reported strong results as the earnings season nears its peak further supported sentiment.

The Nikkei share average advanced 1.08 per cent to close at 27,579.87, while the broader Topix rose 0.94 per cent to 1,952.22.

Wall Street ended sharply higher overnight, lifted by big technology firms such as Apple and Microsoft, while a jump in Treasury yields elevated bank stocks ahead of a key inflation reading this week.

"The US market has raised sentiment. And investors hunted for companies that reported strong earnings," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.

"Also, investors seem to have digested the caution about US monetary policy tightening." Heavy machinery maker IHI surged 10.05 per cent and was the top performer on the Nikkei, after the company tripled its annual operating profit forecast.

Nissan Motor advanced 5.67 per cent, after the automaker raised its full-year profit outlook as it squeezed out more profit per vehicle.

Toyota Motor rose 0.94 per cent, even as the carmaker cut its annual production target by a half a million more vehicles as a chip shortage and Covid-19-related sick leave crimped output.

Steel makers led gains among the exchange's 33 industry subindexes, with JFE Holdings jumping 9.04 per cent.

Technology investor SoftBank Group climbed 5.85 per cent, after it shelved its blockbuster sale of Arm Ltd to US chipmaker Nvidia and said it would instead seek to list the company.

Game contents developer DeNA tumbled 6.98 per cent and was the worst performer on the Nikkei, followed by cement maker Taiheiyo Cement, losing 5.82 per cent. REUTERS