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Nikkei rises as glass firms, department stores gain on upbeat earnings

Published 13/04/2021, 03:44
© Reuters.
JP225
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TOPX
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9021
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3086
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6506
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3099
-
5201
-
5202
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8233
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4661
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IGLSS.T
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TOKYO, April 13 (Reuters) - Japanese shares rose on Tuesday,
led by gains in stocks of glass product companies and department
store operators after their robust earnings, though concerns
about rising domestic COVID-19 cases undermined travel-related
shares.
Nikkei share average .N225 rose 1.0% to 29,840.04, holding
above key support levels from its 25-day, and 50-day moving
average, at 29,507 and 29,442.
The broader Topix .TOPX gained 0.54% to 1,965.08, but it
moved in a tight range it has hugged over the past several
sessions.
AGC 5201.T rose 3.6%, briefly hitting a 10-year high,
after the glass product maker revised up its earnings outlook
and dividend forecasts.
The Tokyo Stock Exchange's glass and ceramic index
.IGLSS.T the top performer among its 33 industry subindexes,
as rival Nippon Sheet Glass 5202.T gained 5.7% on hopes of
strong earnings.
Takashimaya 8233.T gained 4.3% after the department store
chain operator announced a larger-than-expected profit in the
current financial year after a dismal year hit by the pandemic.
That boosted shares of its competitors including J.Front
Retailing 3086.T and Isetan Mitsukoshi 3099.T , which rose
3.0% and 2.3%, respectively.
Hopes of vaccine rollouts also helped to underpin department
store shares, but rising concerns about a surge in domestic
COVID-19 cases hit travel-related sectors.
West Japan Railway 9021.T fell 1.3%, while Tokyo Disney
Resort operator Oriental Land 4661.T lost 1.2%.
Airline shares .IAIR.L.T fell 1.5% to become the
worst-performing industry subindex.
Japan late last week placed Tokyo under a new, month-long
state of "quasi-emergency" to combat surging COVID-19
infections. Yaskawa Electric 6506.T , seen as industry bellwether, also
edged down 0.4% a day after it fell 7.1%, its biggest in more
than a year, after its earnings failed to meet investors'
expectations.
"Yaskawa's reaction seems to epitomise the entire market.
There was nothing wrong with its earnings but people have been
already expecting a strong recovery and that may be already
priced in," said Hiroyuki Ueno, senior strategist at Sumitomo
Mitsui Trust Asset Management.

 

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