Tokyo stocks end higher on solid corporate earnings, U.S. stimulus hopes

Source: Xinhua| 2021-02-09 18:50:22|Editor: huaxia

TOKYO, Feb. 9 (Xinhua) -- Tokyo stocks closed higher Tuesday, with the benchmark Nikkei stock index finishing at a fresh 30-year high, as sentiment was driven by solid corporate earnings by Japanese firms and hopes for U.S. fiscal stimulus.

The 225-issue Nikkei Stock Average added 117.43 points, or 0.40 percent, from Monday to close the day at 29,505.93, marking its highest closing level since Aug. 3, 1990.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, ended 1.59 points, or 0.08 percent, higher at 1,925.54.

Trading got off to a bright start following Wall Street's three major indexes finishing at record closing highs overnight as investor sentiment was bolstered by solid U.S. corporate earnings and hopes for COVID-19 vaccine rollouts, local traders said.

They added that from a broader perspective and including progress towards the enactment of U.S. President Joe Biden's 1.9-trillion-U.S.-dollar stimulus package, investors were becoming more optimistic about the pace of the global economic recovery.

"The market remained solid, supported by hopes for U.S. fiscal stimulus and a recovery in corporate earnings," Makoto Sengoku, a market analyst at the Tokai Tokyo Research Institute, was quoted as saying.

Sengoku also said that investors are "shifting their focus to progress on U.S. President Joe Biden's stimulus package."

Other analysts said that issues were bought back on improving fundamentals, including semi-conductor-related issues.

Conversely, those whose fundamentals weren't solid lost ground, such as transportation issues, they said.

"Investors bought back stocks whose fundamentals are strong, like chip-related shares," Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities, was quoted as saying.

"Airline and railway shares, which had been bought until this morning, became a target for selling as their fundamentals hadn't started to improve yet," Fujito added.

By the close of play, mining, securities brokerage, and information and communication issues comprised those that gained the most.

Among chip-linked issues finding favor, Tokyo Electron added 1.9 percent, while TDK Corp. gained 2.7 percent. Advantest rose 2.3 percent, while Murata Manufacturing climbed 3.2 percent.

Nikkei heavyweight SoftBank Group gained 3.4 percent, after its April-December net profit came in ahead of median market expectations, owing to its Vision Fund's record profits.

Airlines relinquished earlier gains, with Japan Airlines losing 0.95 percent, while ANA Holdings finished 0.92 percent lower.

Among exporters pressured by a comparatively firm yen against the U.S. dollar, Honda Motor lost 1.2 percent, Toyota Motor reversed 0.5 percent, while Nissan shed 0.02 percent.

Issues that fell outpaced those that rose by 1,160 to 933 on the First Section, while 98 ended the day unchanged.

On the main section on Tuesday, 1,469.18 million shares changed hands, dropping from Monday's volume of 1,585.95 million shares.

The turnover on the second trading day of the week came to 3,188.139 billion yen (30.47 billion U.S. dollars). Enditem