Japan’s Nikkei index reversed course and closed higher on Friday as investors broke out of stocks in hopes of solid profits for companies, despite selling in broader Asian markets amid concerns over China’s tightening policy against. the coronavirus.
The Nikkei has closed in rise of 0.69% to 27003.56 points, after moving in a range negative for most of the session.
The broader Topix index rose 0.93% to 1915.91 points.
“The outlook for Japanese companies published prior to the Golden Week vacation was better than expected and investors viewed it as a positive factor,” said John Morita, general manager of research at Chepagen Asset Management.
Japanese markets have opened in bearish after a three-day vacation, following US equities, which closed sharply lower last night on general selling, as sentiment eased amid fears that the previous day’s US interest rate hikes would not been sufficient to curb the rise in inflation.
Investors bought resilient stocks in the midst of inflation, such as commodity-related ones prime and to banks.
Shares of oil exploration companies rose 4.56% as crude oil prices rose, while shares of banks rose 2.52% due to rising US Treasury yields.
Toyota Motor shares were up 2.15%, providing the biggest boost to the Topix index.
Shares of trading company Mitsui & Co. were up 6.08%, while Mitsubishi UFJ Financial Group was up 3.08%.
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