Nikkei ekes out gains after Fed, but meets resistance

  • Reuters
  • Stock Market News
Nikkei ekes out gains after Fed, but meets resistance
Credit: © Reuters.

TOKYO, Oct 31 (Reuters) - Japan's Nikkei edged higher on Thursday after the U.S. Federal Reserve cut interest rates, but the market faced tough resistance as investors were eager to lock in profits after stellar gains this month.

The Nikkei share average .N225 rose 0.19% to 22,887.06 points by mid-morning but stayed below a one-year high of 23,008 touched earlier this week, with many investors keen to sell around 23,000.

The broader Topix .TOPX lost 0.28% to 1,661.27.

The market took cues from gains in Wall Street shares after the Fed cut interest rates as expected.

But some investors were turning cautious as the Fed signalled there would be no further reductions unless the economy soured. Japanese shares got a boost from upbeat earnings.

Sony 6758.T rose as much as 5.2% to 18-year highs after the company posted estimate-beating record profits for the second quarter thanks to robust sales of image sensors. developer SCSK 9719.T rose 8.4% to 18-year highs on strong earnings while drugmaker Shionogi & Co 4507.T gained on strong sales of its HIV drugs.

Glass and display maker AGC 5201.T after its earnings turned out to be less bad than feared.

But others had less luck with semi-conductor making machine maker Advantest 6857.T , which tumbled 6.5% despite solid earnings. Analysts said a pullback had been inevitable given the stock had risen as much as 66% since its previous quarterly earnings on hopes of a recovery in the semi-conductor sector.

Similarly, manufacturer of 5G telecommunication equipment parts Anritsu 6754.T fell 4.1% and many other chip-related shares were soft.

Internet service firm Cyberagent 4751.T fell 10% after its annual profit estimate for the current financial year fell short of analysts' forecasts.

The market is bracing for an imminent policy announcement from the Bank of Japan.

The Japanese central bank is widely expected to keep its policy on hold.

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