Nikkei ends higher in choppy trade; utility cos outperform on drop in oil
Short-covering helped Apple supplier TDK Corp soar 3 per cent.
By REUTERS |
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TOKYO: Japan's Nikkei ended higher in choppy trade on Wednesday as short-covering in electronics component makers and tech shares helped offset weakness in resource stocks dragged down by falling oil prices.
The utility subsector rallied on speculation that a drop in oil prices would contribute to lower costs for power companies.
The Nikkei share average rose 0.2 per cent to 21,846.48, after trading in positive and negative territory during the day. On Tuesday, the Nikkei tumbled to a two-week low, dragged down by the sell-off in tech shares and Apple suppliers.
"The market's major concerns are oil price moves and development in US-China trade war, and these factors will likely determine stocks' performances for the time being," said Katsuhiko Nakamura, a senior technical analyst at Mizuho Securities.
US President Donald Trump's top economic adviser said on Tuesday that the United States welcomed the resumption of trade talks with China, while Vice President Mike Pence warned Beijing to change its behaviour to avoid a new cold war with the United States.
Short-covering helped Apple supplier TDK Corp soar 3 per cent. Chip equipment makers Tokyo Electron rose 1.3 per cent and Advantest Corp gained 3 per cent.
Power companies outperformed after oil prices tumbled 7 per cent on Tuesday, hit by ongoing worries about weakening global demand and oversupply.
Tokyo Electric Power jumped 6.8 per cent and Chubu Electric Power surged 3.7 per cent.
Mining stocks and trading houses, which have commodity prices at the core of their businesses, were sold. Inpex Corp shed 1.9 per cent, Japan Petroleum Exploration Co slipped 2.1 per cent, Marubeni Corp dropped 2.2 per cent and Mitsui & Co tumbled 3 per cent.
Mitsubishi UFJ Financial Group surged 1.5 per cent after the bank raised its net profit outlook to 950 billion yen from 850 billion yen for the fiscal year ending March.
It also said it would buy back up to 100 billion yen, or 1.52 per cent, of its outstanding shares.
The broader Topix added 0.2 per cent to 1,641.26.
The utility subsector rallied on speculation that a drop in oil prices would contribute to lower costs for power companies.
The Nikkei share average rose 0.2 per cent to 21,846.48, after trading in positive and negative territory during the day. On Tuesday, the Nikkei tumbled to a two-week low, dragged down by the sell-off in tech shares and Apple suppliers.
"The market's major concerns are oil price moves and development in US-China trade war, and these factors will likely determine stocks' performances for the time being," said Katsuhiko Nakamura, a senior technical analyst at Mizuho Securities.
US President Donald Trump's top economic adviser said on Tuesday that the United States welcomed the resumption of trade talks with China, while Vice President Mike Pence warned Beijing to change its behaviour to avoid a new cold war with the United States.
Short-covering helped Apple supplier TDK Corp soar 3 per cent. Chip equipment makers Tokyo Electron rose 1.3 per cent and Advantest Corp gained 3 per cent.
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Power companies outperformed after oil prices tumbled 7 per cent on Tuesday, hit by ongoing worries about weakening global demand and oversupply.
Tokyo Electric Power jumped 6.8 per cent and Chubu Electric Power surged 3.7 per cent.
Mining stocks and trading houses, which have commodity prices at the core of their businesses, were sold. Inpex Corp shed 1.9 per cent, Japan Petroleum Exploration Co slipped 2.1 per cent, Marubeni Corp dropped 2.2 per cent and Mitsui & Co tumbled 3 per cent.
Mitsubishi UFJ Financial Group surged 1.5 per cent after the bank raised its net profit outlook to 950 billion yen from 850 billion yen for the fiscal year ending March.
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It also said it would buy back up to 100 billion yen, or 1.52 per cent, of its outstanding shares.
The broader Topix added 0.2 per cent to 1,641.26.
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