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Japan shares end slightly higher, corporate outlook concerns cap gains

Published 2021/04/28, 08:38
Updated 2021/04/28, 08:42
© Reuters.
JP225
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TOPX
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4063
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6367
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7751
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9022
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ISECU.T
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TOKYO, April 28 (Reuters) - Japanese shares closed slightly higher on Wednesday, led by technology stocks, but concerns about corporate outlook capped gains even as investors awaited a decision by the U.S. Federal Reserve.

The Nikkei share average .N225 edged up 0.21% to close at 29,053.97, while the broader Topix .TOPX inched up 0.29% to 1,903.

"There is a growing concern among investors that corporate outlook may not meet their high expectations. That has been proven by recent fall in shares of some renowned companies which flagged strong outlook," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

"It is hard for investors to make any move today ahead of several significant events in Japan and the United States."

Japan is in the middle of the corporate earnings season, with Sony Group 6758.T , Shin-Etsu Chemical 4063.T and TDK 6762.T among major firms reporting their outlook after the market closes on Wednesday.

So far, a slew of companies, including Nidec 6594.T and Canon 7751.T , have failed to impress investors despite relatively strong earnings. firms such as robot maker Fanuc 6954.T rose 2.03%, while air conditioner maker Daikin Industries 6367.T gained 2.82%.

Nomura Holdings 8604.T rose 1.54% after Japan's largest brokerage said it would book a $2.9 billion loss from the collapse of U.S. investment fund Archegos. sent securities firms .ISECU.T 1.82% higher, making it the top gainer among the Tokyo Stock Exchange's 33 industry subindexes.

Kansai Electric Power 9503.T rose 2.35% after the utility got the greenlight from local authorities to restart three reactors. stocks that gained the most among the top 30 core Topix names were Sony Group, gaining 3.14 %, followed by Daikin Industries.

Central Japan Railway Co 9022.T , which fell 4.42%, was the worst performer among the Topix 30 stocks, followed by Daiichi Sankyo 4568.T losing 3.10%.

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