Japan shares ride earnings to end higher, Delta worries linger

  • 8/10/2021
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TOKYO, Aug 10 (Reuters) - Japanese stocks ended higher on Tuesday as corporate earnings continued to impress, but gains were limited by worries about the fast-spreading Delta coronavirus variant. The Nikkei share average ended the day 0.24% higher at 27,888.15, after earlier marking a mid-July peak of 28,128.61. The broader Topix rallied 0.36% to 1,936.28, but off its session high of 1,950.63. “After the Nikkei hit 28,100, it seems there was a rush to take profits,” said a market participant at an asset management company. “There are still worries about the Delta variant, so sudden rallies are likely to get reined in.” Japan is battling a fifth coronavirus wave, registering 12,073 new infections nationwide on Monday after touching a record high two days earlier. Hope for additional fiscal support took a knock on Tuesday, with Finance Minister Taro Aso saying the government was not yet considering compiling an extra budget. Thinner market conditions may have also heightened volatility. Monday was a national holiday in Japan, and the Obon festival runs from Friday until next Monday, although markets will be open both days. Mitsui Mining and Smelting Co was the top gainer on the Nikkei, surging 8.75%, thanks to upbeat earnings posted on Friday. Smelter Dowa Holdings jumped 5.43%, and drugmaker Otsuka Holdings advanced 5.39% following quarterly results. Conglomerate SoftBank Group added 0.9% ahead of earnings after market close on Tuesday. On the other side, Sumitomo Metal Mining Co sank 6.61% after earnings disappointed investors. Sony Group slipped 2.50%, while Nintendo lost 3.05%, making them the two worst performers among Topix’s 30 core names. (Reporting by Tokyo markets team; Editing by Ramakrishnan M.) Our Standards: The Thomson Reuters Trust Principles.

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