TOKYO (AFP) – Tokyo stocks reversed an initial sell-off to close higher yesterday, despite fears they might be overbought, while investors awaited speeches by United States Federal Reserve (Fed) officials including boss Jerome Powell.
The benchmark Nikkei 225 index rose 0.56 per cent, or 186.23 points, to close at 33,575.14, while the broader Topix index advanced 0.49 per cent, or 11.16 points, to 2,295.01.
Stocks were boosted by a weaker yen, while investors also cheered corporate measures to boost returns to shareholders.
The dollar fetched JPY141.92 in Asia, against JPY141.40 in New York.
“Investment targets expanded to include shares that had failed to keep up with the recent gains as well as small to medium-size shares,” Daiwa Securities said.
“The Nikkei is increasing its range while solidifying its footing around the 33,000 level,” the brokerage said.
Wariness that a recent rally may have run too far has remained, however, with hopes that foreign investors’ buying appetite will last, said Chihiro Ota of SMBC Nikko Securities.
Eyes are now turning to Washington, where Powell will make a semiannual appearance before Congress. His comments will be closely scrutinised for clues about the direction of the Fed’s campaign to fight soaring inflation with interest rate hikes.
SoftBank Group jumped 3.68 per cent to JPY6,937. The firm held a shareholders meeting and announced its resolve to lead the race to develop artificial intelligence (AI).
Hopes for AI growth also lifted semiconductor-related shares. Tokyo Electron rose 2.80 per cent to JPY20,560 and Advantest climbed 1.25 per cent to JPY19,895.
Tourism firms got a lift as Japan sees more inbound visitors after COVID border rules were lifted. Air carrier ANA Holdings was up 2.66 per cent at JPY3,320, while rival Japan Airlines surged 3.43 per cent to JPY3,065.
Trading houses jumped after Berkshire Hathaway said it had increased its investments in Japanese companies.
Industry giant Mitsubishi Corp added 0.28 per cent to JPY7,220, Mitsui&Co. rose 0.10 per cent to JPY5,754 and Marubeni edged up 1.04 per cent to JPY2,531.5.
Among losers, Toyota fell 1.14 per cent to JPY2,218.5 and Sony tumbled 1.93 per cent to JPY13,470.
