TOKYO: Japanese shares recouped early losses to end flat on Friday, as stronger-than-expected domestic earnings prompted investors to overlook a stronger yen and pour more money into stocks.
The Nikkei ended flat at 37,753.72, after falling as much as 0.73% earlier in the session on a stronger yen. The index rose 0.67% for the week in its fifth straight week of gains.
The broader Topix also reversed course, inching up 0.05% at 2,740.45 and inched up 0.2% for the week.
“The market bought back stocks on optimism of corporate outlook after a series of stronger-than-expected earnings,” said Shoichi Arisawa, general manager at the investment research department at IwaiCosmo Securities.
“And more-than-expected announcements for share buybacks is very positive to the market.”
The Nikkei had reclaimed the psychologically important level of 38,000 earlier this week on hopes that a Japan trade deal could be on the cards after a tariff truce between the US and China.
But since then, the market has drifted lower as a lack of clarity on trade negotiations crimped gains.
AloJapan.com