This May 7, 2020 file photo shows the Tokyo Stock Exchange. (Mainichi)
TOKYO (Kyodo) — Tokyo stocks ended higher Wednesday, lifted by solid earnings reports from certain companies that helped ease concerns over the impact of higher U.S. tariffs.
The 225-issue Nikkei Stock Average rose 245.32 points, or 0.60 percent, from Tuesday at 40,794.86. The broader Topix index finished 30.03 points, or 1.02 percent, higher at 2,966.57.
On the top-tier Prime Market, the main gainers were real estate, construction and oil and coal product issues.
The U.S. dollar briefly fell to the lower 147 yen range in Tokyo, as the yen, seen as a safe-haven asset, was bought amid lingering concern over a U.S. economic slowdown, dealers said.
At 5 p.m., the dollar fetched 147.55-57 yen compared with 147.50-60 yen in New York and 147.36-38 yen in Tokyo at 5 p.m. Tuesday.
The euro was quoted at $1.1581-1582 and 170.88-92 yen against $1.1570-1580 and 170.72-82 yen in New York and $1.1545-1547 and 170.13-17 yen in Tokyo late Tuesday afternoon.
The yield on the benchmark 10-year Japanese government bond ended at 1.495 percent, up 0.025 percentage point from Tuesday’s close, as the debt was sold following a rise in U.S. Treasury yields.
The Nikkei index was initially pressured by the selling of chip shares after U.S. President Donald Trump said he will announce a levy on semiconductors in the “next week or so.”
However, the market was lifted by the buying of shares in real estate firm Mitsui Fudosan and others after they released strong quarterly earnings.
Export-oriented auto shares were also bought back after recent earnings reports showed the negative impact of higher U.S. tariffs on performance is unlikely to be significant. Some companies, however, such as Mazda Motor Corp. did revise downward their business forecast, brokers said.
“Recent earnings have shown that the effects of (the tariffs) remain within the scope of expectations at least for now, helping the market emerge from its worse phase,” said Makoto Sengoku, senior equity market analyst at Tokai Tokyo Intelligence Laboratory Co.
AloJapan.com