Tokyo stocks end higher on domestic earnings optimism

Tokyo stocks closed higher Wednesday, buoyed by optimism for the domestic earnings season following strong performances reported by Japanese firms the previous day.

The 225-issue Nikkei Stock Average ended up 220.85 points, or 0.61 percent, from Tuesday at 36,286.71. The broader Topix index finished 24.17 points, or 0.96 percent, higher at 2,551.10.

On the top-tier Prime Market, gainers were led by bank, electric power and gas, and real estate shares.

The U.S. dollar was almost flat in the upper 147 yen range in Tokyo as traders refrained from making big moves ahead of the outcome of the U.S. Federal Reserve policy meeting later in the day.

Stocks pared earlier losses to close higher after being initially weighed down by semiconductor and tech shares following disappointing earnings from some U.S. technology giants overnight.

But the market was supported by buying of Japanese firms with favorable earnings such as Canon Inc., signaling "a smooth start to the earnings season," said Koichi Fujishiro, senior economist at the Dai-ichi Life Research Institute.

Over 300 listed companies are announcing earnings on Wednesday, with the domestic reporting season culminating in mid-February.

Bank issues also drew buying on the prospect of higher interest rates after a summary of opinions from the Bank of Japan's January meeting hinted the central bank is preparing to shift from its ultraloose monetary policy, Fujishiro said.

© Kyodo News