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. Some 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.
System 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.