The Business Times

Tokyo: Stocks close up for third straight session

Published Tue, Jul 27, 2021 · 02:37 PM

[TOKYO] Tokyo stocks closed higher for a third consecutive session Tuesday following rallies on Wall Street, though trading remained cautious ahead of the US Federal Reserve's latest meeting.

The benchmark Nikkei 225 index rose 0.49 per cent or 136.93 points to 27,970.22, while the broader Topix index gained 0.64 per cent or 12.42 points to 1,938.04.

Japanese shares gained ground after the three major US indices closed at fresh records, as big earnings announcements overcame fears that the Delta coronavirus variant could hold back the country's economic recovery.

But profit-taking emerged later, eroding part of the early gains, said Shinichi Yamamoto, a broker at Okasan Securities.

"Whenever the Nikkei approaches 28,000, buying momentum tends to become more subdued," Mr Yamamoto told AFP.

"Trading is expected to stay within the current range for now."

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Many investors remained on the sidelines ahead of the two-day Fed policy meeting starting later Tuesday, dealers said.

The dollar fetched 110.22 yen in Asian afternoon trade, against 110.31 yen in New York late Monday.

Nissan, which will announce its first-quarter earnings on Wednesday, jumped 2.09 per cent to 571.5 yen with Toyota up 0.42 per cent at 9,871 yen.

Online mall giant Rakuten dived 7.31 per cent to 1,217 yen after ratings agency S&P downgraded the company's long-term rating to BB+, a junk status.

AFP

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