TOKYO: Tokyo stocks opened higher on Wednesday supported by record levels in New York but investors remained cautious amid corporate earnings season and ahead of an unprecedented 10 days of holidays next week.
The benchmark Nikkei 225 index was up 0.40% or 88.43 points at 22,348.17 in early trade, while the broader Topix index climbed 0.32% or 5.15 points at 1,628.12.
“Japanese shares are testing the upside after the rebound in the Dow and fresh record highs in the Nasdaq” and S&P 500 in New York, strategist Yoshihiro Ito of Okasan Online Securities said in a commentary.
However the market “lacks any energy of active selling and buying as investors are trying to evaluate corporate earnings reports ahead of the holidays“, he added.
On Wall Street, both the S&P 500 and Nasdaq ended at all-time highs, with the Dow ending up 0.6% at 26,656.39 following a barrage of solid results from major companies across different economic sectors.
The dollar fetched 111.82 yen in early Asian trade, against 111.85 yen in New York.
In Tokyo, some electronics firms were higher, with Sharp gaining 2.24% to 1,323 yen and chip-testing equipment maker Advantest trading up 1.81% at 3,365 yen.
Nissan was down 1.92% at 924.5 yen after a report said the automaker will revise down its full-year profit forecast later on Wednesday.
Precision motor maker Nidec was up 2.25% at 16,105 yen after it announced a 15% decline in its full-year net profit. However, the firm forecast a 21% growth in net profit for the current year to March 2020. — Bernama