Dow Today – Nikkei rises on tech boost amid earnings caution
TOKYO, Oct 19 (Reuters) – Japan’s Nikkei rose on Tuesday, led by heavyweight technology stocks on the back of Nasdaq’s overnight gains even as concerns prevailed ahead of the domestic earnings season starting next week.
The Nikkei share average advanced 0.62% to 29,206.19 by 0205 GMT, while the broader Topix edged up 0.24% to 2,024.02 after briefly turning negative.
“Investors are awaiting corporate results and outlook. There are some factors that could affect the outlook, such as the weakened yen and rising oil prices,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
“Also, investors sold value stocks as U.S. and Japanese interest rates dropped in early Asian trading hours, which is why banks and car makers were weak,” he said, referring to Japanese government bond and U.S. Treasury yields.
Overnight, the Nasdaq and the S&P 500 closed higher amid gains in U.S. mega-cap technology and other growth names, while the Dow edged lower.
Chip-making equipment maker Tokyo Electron rose 2.4%, global technology investor SoftBank Group jumped 2.12% and robot maker Fanuc advanced 1.59%.
Car maker Toyota Motor weighed the most on the Topix with a 1% drop, while Mitsubishi UFJ Financial Group slipped 0.74%.
Shippers gained the most among the exchange’s 33 industry sub-indexes with a 3.63% jump. Kawasaki Kisen rose 4.18% and Nippon Yusen gained 3.98%.
Oil explorers were the biggest losers among sectors as crude oil prices eased, falling 3.44%. Inpex fell 3.37% and Japan Petroleum Exploration lost 5.19%. (Reporting by Junko Fujita; Editing by Subhranshu Sahu)