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Tokyo stocks rise on firm tech shares, domestic earnings in focus

This file photo shows the Tokyo Stock Exchange. (Mainichi)

TOKYO (Kyodo) -- Tokyo stocks gained on Tuesday, lifted by firm technology shares, though they moved in a tight range in the afternoon as investors awaited corporate earnings reports starting next week.

    The 225-issue Nikkei Stock Average ended up 190.06 points, or 0.65 percent, from Monday at 29,215.52. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 7.34 points, or 0.36 percent, higher at 2,026.57.

    Gainers were led by precision instrument, marine transportation, and information and communication issues.

    The U.S. dollar stayed in the lower 114 yen zone for much of the day on an absence of fresh trading cues, dealers said. It briefly fell to the upper 113 yen zone in the late afternoon when European traders joined the currency market.

    At 5 p.m., the dollar fetched 114.01-03 yen compared with 114.26-36 yen in New York and 114.29-30 yen in Tokyo at 5 p.m. Monday.

    The euro was quoted at $1.1653-1654 and 132.86-90 yen against $1.1605-1615 and 132.68-78 yen in New York and $1.1592-1593 and 132.49-53 yen in Tokyo late Monday afternoon.

    The yield on the benchmark 10-year Japanese government bond fell 0.005 percentage point from Monday's close to 0.085 percent as investors bought back the debt following sell-offs the previous day.

    Shares gained from the opening led by heavyweight technology issues, tracking the tech-heavy U.S. Nasdaq index's overnight advance, while solid Shanghai and Hong Kong markets also helped improve investor sentiment, brokers said.

    But Tokyo stocks lacked momentum to gain further as investors waited for upcoming corporate results for the April to September period and their full-year outlook, brokers said.

    "Focus is on how many companies will revise upward their earnings forecasts for the full year (through March) and how the recent weaker yen and higher oil prices will affect their earnings," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

    Investors are also paying close attention to how China's real estate regulations and electric power shortages might impact Japanese companies that are deeply involved in the business in the world's second-largest economy, Ichikawa added.

    As for the Oct. 31 general election in Japan, investors are keeping an eye on the outcome to see whether the government of Prime Minister Fumio Kishida will last for a long time, based on the number of seats won by the ruling coalition of the Liberal Democratic Party and Komeito, Ichikawa said.

    Campaigning for the election began Tuesday, with Kishida seeking a mandate for his COVID-19 and economic policies, while opposition parties are banding together in a bid to loosen the ruling coalition's grip on power.

    On the First Section, advancing issues outnumbered decliners 1,115 to 962, while 107 ended unchanged.

    Among chip-related issues, Tokyo Electron advanced 930 yen, or 1.9 percent, to 50,940 yen and Advantest gained 160 yen, or 1.8 percent, to 9,280 yen.

    Sensor maker Keyence climbed 1,440 yen, or 2.1 percent, to 68,660 yen and electronic component provider TDK jumped 90 yen, or 2.4 percent, to 3,875 yen.

    Sony Group rose 55 yen, or 0.4 percent, to 12,735 yen after the company said an online gaming division under the wing of its U.S. unit Sony Pictures Entertainment Inc. will be sold to American mobile game company Scopely Inc. for $1 billion.

    Trading volume on the main section dropped to 992.79 million shares from Monday's 1,084.98 million shares..

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