Nikkei gains on positive earnings, virus worries linger

  • 8/5/2021
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TOKYO, Aug 5 (Reuters) - Japan’s Nikkei share average rose on Thursday, underpinned by upbeat earnings from Nippon Yusen , Hitachi Zozen, and Sony Group, although gains were capped by concerns about surging cases of COVID-19. The country reported an unprecedented 14,207 jump in new cases on Tuesday, led by a record 4,166 infections for Olympics-host Tokyo. Disappointing financial results from Ricoh also dragged the index, tumbling 11.87%. The tech-heavy Nikkei ended the morning session 0.34% higher, narrowly outpacing a 0.26% rise in the broader Topix, as technology shares tracked a firm finish on Wall Street. The Topix growth index added 0.37%, outstripping the value index’s 0.15% advance. “There continue to be concerns that Japan’s stock market is top-heavy, but a string of positive earnings seems to have improved sentiment,” said a market player at a domestic securities firm. The Nikkei has steadily retreated since surging to a multi-decade high above 30,000 in mid-February, and has oscillated in a range of around 27,300-28,000 since mid-July. Nippon Yusen was the Nikkei’s top performer, jumping 8.8%. Fellow shippers Mitsui OSK Lines rallied 6.04% and Kawasaki Kisen jumped 3.85%. Sea transport was the top subsector on the Topix by far, surging 7.05%. Infrastructure and energy company Hitachi Zozen rallied 7.19%, while Sony Group rose 2.08%. Rakuten Group advanced 7.5% after the company entered a partnership to build a new mobile network in Germany. (Reporting by Tokyo markets team; editing by Uttaresh.V)

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