Japanese stocks gain on bullish business outlook, US-China talks in focus
TOKYO, Nov 16 (Reuters) – Japanese stocks rose Tuesday as investors brought in companies with optimistic outlooks, although gains were capped by caution ahead of the outcome of the US-China summit.
Nikkei’s stock average rose 0.2% to 29,839.25 against 0221 GMT, after gaining a staggering 0.6%. The broader Topix rose 0.4% to 2,056.65.
“After the earnings season is over, the money has shifted to stocks with positive prospects. Investors want to buy companies with strong fundamentals after the quarter,” said Ikuo Mitsui, fund manager at Aizawa Securities.
“Investors (now) await the outcome of the online (summit) between the leaders of the US and China. If they could avoid a clash between the two countries, it is likely that the ongoing trend of global economic recovery would continue.”
Both the Nikkei and Topix accelerated their gains when the news that Chinese President Xi Jinping told US President Biden in a virtual meeting that the two countries must strengthen communications and coexist peacefully, according to a report by Chinese state media.
Toyota Motor led Topix’s profits up 2.19%, as the automaker said last week it began compensating for production lost to inventory shortages in December to support its plan to expand globally during the fiscal year. To produce and maintain 9 million vehicles.
Chip-related Tokyo Electron and Murata Manufacturing were up 1.01% and 3.04%, respectively.
Insurers rose as US Treasury yields rose, with T&D Holdings up 3.33% and Dai-ichi Life Holdings up 2.5%.
Employment agency Recruit Holdings, which has footprints in the US through employment site Indeed, fell 2.99% even after a jump in half-year profit. (Edited by Uttaresh.V)