Japanese shares end higher on chip stocks boost; corporate outlook worries cap gains

  • Reuters
  • Stock Market News
Japanese shares end higher on chip stocks boost; corporate outlook worries cap gains
Credit: © Reuters.

TOKYO, April 16 (Reuters) - Japanese shares closed slightly higher on Friday as heavyweight chip shares rallied, although concerns around corporate outlook capped the gains.

The Nikkei index .N225 ended up 0.14% at 29,683.37, while the broader Topix .TOPX inched up 0.09% to close at 1,960.87.

Chip-related shares gained after Taiwan Semiconductor Manufacturing Ltd (TSMC) 2330.TW , TSM.N reported a 19.4% rise in first-quarter profit on strong chip demand. 6857.T rose 0.38%, Tokyo Electron 8035.T gained 0.37% and Renesas Electronic 6723.T jumped 2.48%.

But, NLI Research Institute's chief equity strategist Shingo Ide points out that investors are getting cautious about corporate outlook ahead of earnings season starting next week as their expectations were so high.

Electronic components maker Nidec 6594.T will kickstart earnings for major Japanese manufacturers on Thursday.

Robot maker Yaskawa 6506.T , the leading indicator on Japanese manufacturers' earnings trend, this week disappointed investors with its profit outlook and its stock has lost more than 7% this week.

Aiding the cautious stance is the likely expansion of quasi-emergency measures to 10 regions due to a surge in cases of the novel coronavirus. individual shares and sectors, Toshiba 6502.T dropped 6.03% after a report that the conglomerate told its lenders that it plans to reject a buyout proposal from private equity firm CVC Capital Partners. 9602.T , up 3.95%, was the largest percentage gainer on the Nikkei index, followed by Marui Group 8252.T gaining 3.18% and Daiwa House Industry 1925.T , up 3.06%.

Tokyo Electric Power 9501.T , down 4.73%, was the largest percentage loser on the Nikkei, followed by Sharp 6753.T , losing 3.07%, and Screen Holdings 7735.T down 2.92 %.

There were 117 advancers on the Nikkei index against 106 decliners.

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