Tokyo stocks close higher with eyes on earnings

Tokyo stocks closed higher Monday, extending rallies on Wall Street, while the yen’s value was volatile following reports that the Japanese government intervened to prop up the currency, AFP reported.
The benchmark Nikkei 225 index ended up 0.31 percent, or 84.32 points, at 26,974.90, while the broader Topix index edged up 0.28 percent, or 5.21 points, to 1,887.19.
Japanese shares started with gains following rises in US shares, with investors hopeful that the Federal Reserve may slow down the pace of rate hikes this year, analysts said.
But in later trade, “a wait-and-see attitude was seen growing” ahead of the start of Japan’s corporate earnings season, Mizuho Securities said.
Dollar-yen trade had a roller-coaster session, changing hands at 148.90 yen in late Tokyo hours.
The Japanese currency briefly firmed to 145 yen from around 149 yen at 8:00 am (2300 GMT Sunday), compared to 147.65 yen against the dollar in New York late Friday.
These movements fuelled speculation that the Japanese government may have intervened in forex markets to boost the value of the yen again on Monday, following another reported intervention on Friday.
Finance Minister Shunichi Suzuki on Monday morning declined to comment on whether any intervention had taken place, saying the government is “squarely confronting speculative investors”.
Japan spent 2.8 trillion yen in September (then around $20 billion) on an intervention, which involves selling dollars and buying yen. The Financial Times said Friday’s suspected intervention may have cost up to $30 billion.
Toyota ended up 0.45 percent at 1,996.5 yen, despite saying it would miss its fiscal 2023 production target “due to the parts shortage resulting from the spread of Covid-19”.
Electronic parts maker Nidec rallied 2.91 percent to 7,965 yen ahead of its second-quarter earnings report due later in the day.
Olympus lost early gains to end down 0.93 percent at 2,980 yen, after the company said it promoted director Stefan Kaufmann to CEO, a move effective from April.