Tokyo: Shares end slightly higher, corporate outlook concerns cap gains

[TOKYO] Japanese shares closed slightly higher on Wednesday, led by technology stocks, but concerns about corporate outlook capped gains even as investors awaited a decision by the US Federal Reserve.

The Nikkei share average edged up 0.21 per cent to close at 29,053.97, while the broader Topix inched up 0.29 per cent to 1,903.

"There is a growing concern among investors that corporate outlook may not meet their high expectations. That has been proven by recent fall in shares of some renowned companies which flagged strong outlook," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

"It is hard for investors to make any move today ahead of several significant events in Japan and the United States."

Japan is in the middle of the corporate earnings season, with Sony Group, Shin-Etsu Chemical and TDK among major firms reporting their outlook after the market closes on Wednesday.

So far, a slew of companies, including Nidec and Canon, have failed to impress investors despite relatively strong earnings.

Technology firms such as robot maker Fanuc rose 2.03 per cent, while air conditioner maker Daikin Industries gained 2.82 per cent.

Nomura Holdings rose 1.54 per cent after Japan's largest brokerage said it would book a US$2.9 billion loss from the collapse of US investment fund Archegos.

That sent securities firms 1.82 per cent higher, making it the top gainer among the Tokyo Stock Exchange's 33 industry subindexes.

Kansai Electric Power rose 2.35 per cent after the utility got the greenlight from local authorities to restart three reactors.

The stocks that gained the most among the top 30 core Topix names were Sony Group, gaining 3.14 per cent, followed by Daikin Industries.

Central Japan Railway, which fell 4.42 per cent, was the worst performer among the Topix 30 stocks, followed by Daiichi Sankyo losing 3.10 per cent.

REUTERS