Tokyo shares rebound with focus on Fed

Tokyo stocks reversed an initial sell-off to close higher Wednesday, despite fears they might be overbought, while investors awaited speeches by US Federal Reserve officials including boss Jerome Powell.

The benchmark Nikkei 225 index rose 0.56 percent, or 186.23 points, to close at 33,575.14, while the broader Topix index advanced 0.49 percent, or 11.16 points, to 2,295.01.

Stocks were boosted by a weaker yen, while investors also cheered corporate measures to boost returns to shareholders.

The dollar fetched 141.92 yen in Asia, against 141.40 yen in New York.

"Investment targets expanded to include shares that had failed to keep up with the recent gains as well as small to medium-size shares," Daiwa Securities said.

"The Nikkei is increasing its range while solidifying its footing around the 33,000 level," the brokerage said.

Wariness that a recent rally may have run too far has remained, however, with hopes that foreign investors' buying appetite will last, said Chihiro Ota of SMBC Nikko Securities.

Eyes are now turning to Washington, where Powell will make a semiannual appearance before Congress.

His comments will be closely scrutinized for clues about the direction of the Fed's campaign to fight soaring inflation with interest rate hikes.

SoftBank Group jumped 3.68 percent to 6,937 yen. The firm held a shareholders meeting and announced its resolve to lead the race to develop artificial intelligence.

Hopes for AI growth also lifted semiconductor-related shares. Tokyo Electron rose 2.80 percent to 20,560 yen and Advantest climbed 1.25 percent to 19,895 yen.

Tourism firms got a lift as Japan sees more inbound visitors after COVID border rules were lifted. Air carrier ANA Holdings was up 2.66 percent at 3,320 yen, while rival Japan Airlines surged 3.43 percent to 3,065 yen.

Trading houses jumped after Berkshire Hathaway said it had increased its investments in Japanese companies.

Industry giant Mitsubishi Corp added 0.28 percent to 7,220 yen, Mitsui&Co. rose 0.10 percent to 5,754 yen and Marubeni edged up 1.04 percent to 2,531.5 yen.

Among losers, Toyota fell 1.14 percent to 2,218.5 yen and Sony tumbled 1.93 percent to 13,470 yen.

 

AFP