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Japanese shares end higher as upbeat earnings forecasts aid sentiment

Published 01/02/2021, 07:39
Updated 01/02/2021, 07:42

TOKYO, Feb 1 (Reuters) - Japanese shares closed higher on
Monday, after two straight sessions of declines, as upbeat
earnings forecasts and gains in beaten-down chipmakers lifted
sentiment.
The Nikkei share average .N225 ended 1.55% higher at
28,091.05 and the broader Topix .TOPX gained 1.16% to
1,829.84.
"Investors are buying shares that were sold more than they
should have last week," said Norihiro Fujito, chief investment
strategist, Mitsubishi UFJ Morgan Stanley Securities. "Last
week's sell-downs were driven by sentimental reasons."
Japanese stocks had tumbled for two days as investors grew
nervous about further market turbulences in the U.S. caused by
the headline-grabbing battle between retail investors and funds
that specialise in shorting stocks. Asian shares also rallied and U.S. stock futures recouped
early losses as newly empowered retail investors turned their
attention to precious metals, promising a respite to some
hard-hit hedge funds. MKTS/GLOB
NEC 6701.T surged 12.81%, making it the biggest gainer in
the Nikkei 225 index, after the computer network services
company reported a 5.7% rise in its nine-month operating profit,
followed by Toto 5332.T which jumped 12.44% after the toilet
maker raised its profit outlook.
Chip-related shares gained, with Nidec 6594.T gaining
2.49%, Keyence 6861.T rising 2.74% and Advantest 6857.T
rising 1.93%.
Game maker Nintendo 7974.T rose 3.4% ahead of its earnings
report on Monday.
However, some stocks declined despite the upbeat forecasts
as investors had already priced in the revisions. Electronic
component makers Murata 6981.T fell 3.32% and TDK 6762.T
declined 4.68%.
Panasonic 6752.T edged down 0.89% after the home electric
appliances maker said it would cease production of its own solar
panels.

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