Nikkei up on tech shares but gains limited before US-Japan trade talks

Published 2018/08/08, 04:50
Updated 2018/08/08, 05:00
© Reuters.  Nikkei up on tech shares but gains limited before US-Japan trade talks
JP225
-
TOPX
-
4151
-
7731
-
6367
-
2503
-
6501
-
9432
-
6762
-
3436
-

* Market braces for U.S.-Japan trade talks

* NTT soars after co says to launch global holding co

* Kirin tumbles after its business profit falls

By Ayai Tomisawa

TOKYO, Aug 8 (Reuters) - Japan's Nikkei rose on Wednesday morning led by tech shares on the back of a solid performance from their U.S. peers, while investors also bid up firms with brisk earnings such as Nikon and Daikin.

Overall gains, however, were limited as the market braced for U.S.-Japan trade talks slated in Washington on Thursday. Tokyo is seeking ways to counter U.S. pressure for a bilateral free trade agreement (FTA) and head off a rise in tariffs on its auto exports.

The Nikkei share average .N225 rose 0.4 percent to 22,754.28 in midmorning trade, hovering at its one-week highs.

"People are cautious ahead of Thursday's trade talks... they are bracing for the U.S.'s hard stance on Japan because that has been the pattern with China and Europe," said Hikaru Sato, a senior technical analyst at Daiwa Securities.

Tech shares outperformed, with TDK Corp 6762.T rising 3.9 percent, Hitachi Ltd 6501.T gaining 1.7 percent and Sumco Corp 3436.T adding 2.3 percent.

NTT Corp 9432.T jumped 3.1 percent after the telecommunication company said that it will set up a global holding firm focused on overseas IT business on hopes to strengthen its competitiveness aboard.

Nikon Corp 7731.T soared 8 percent after the camera maker raised its net profit outlook to 53 billion yen from 50 billion yen for the year ending March 2019, due to strong demand in high-end digital cameras as well as reduced costs. It also expects to pay a higher annual dividend.

Air-conditioning system maker Daikin Industries 6367.T soared 4 percent after its April-June operating profit rose 11.7 percent to 83.1 billion yen.

On the downside, Kirin Holdings 2503.T tumbled after its business profits fell 5 percent on the year to 49.2 billion yen.

Nomura Securities said that although it was ahead of its own estimate of 45 billion yen, it was mainly due to better-than-expected performances at Kyowa Hakko Kirin 4151.T which had already announced results.

The broader Topix .TOPX gained 0.3 percent to 1,751.24.

(Editing by Shri Navaratnam)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.