Japanese shares advanced on Tuesday, led by technology firms, as investors looked beyond sluggish earnings in the previous quarter and bet on a potential recovery over the coming seasons.
The Nikkei share average rose 0.43% to 21,709.31, edging near its 2-1/2-month high of 21,823 touched last week. The broader Topix gained 0.45% to 1,575.58.
Japan’s industrial output also fell a bigger-than-expected 3.6% to 1-1/2-year lows in June but that did not shake investors’ confidence either.
More companies including Sony, Nintendo and Sumitomo Mitsui Financial Group, are due to announce earnings after market close on Tuesday.
Earlier in the day, the Bank of Japan held off on expanding stimulus but signalled its readiness to do so “without hesitation,” if a global slowdown jeopardizes the country’s economic recovery.
Growing fallout from the U.S.-China trade war has prompted major central banks to signal more easing and put pressure on the BOJ, which has far less policy ammunition left to deal with a significant downturn.
Source : Reuters