Nikkei rebounds on Wall St gains, Toyota, but Apple suppliers sold
* Investors cautious before U.S. midterm elections
* Toyota up after raising earnings forecast, share buyback plan
* Japan Display tumbles after report Apple cancels production boost
* SoftBank volatile on uncertainty over Vision Fund
By Ayai Tomisawa
TOKYO, Nov 6 (Reuters) - Japan's Nikkei average rebounded on Tuesday, tracking gains in Wall Street, while Apple suppliers fell on a report that the tech giant has scrapped plans to boost production of its new iPhone XR.
Toyota Motor 7203.T surged 2.1 percent after the company raised its full-year operating profit forecast by 4.3 percent to 2.4 trillion yen from the previously 2.3 trillion yen and said it would buy back up to 250 billion yen of its own shares. Nikkei .N225 rose 1.1 percent to 22,147.75, recouping much of Monday's 1.6 percent drop.
With potentially market-moving U.S. mid-term elections scheduled later in the day, investors stayed cautious. The Nikkei moved in a narrow 167-point range.
"There were more investors going long today than going short as most of them wanted to buy back from recent selling," said Yutaka Miura, a senior technical analyst at Mizuho Securities.
"Unless the election result defies market expectations, stocks are expected to rise."
Opinion polls show a strong chance that the Democratic Party could win control of the House of Representatives in the U.S. mid-term elections later in the day, after two years of wielding no practical political power in Washington.
President Donald Trump's Republican Party is seen as likely to keep the Senate.
Buying was particularly strong in recently beaten-down stocks, with 32 of the Topix's 33 subsectors in positive territory.
Automakers gained ground, with Honda Motor 7267.T advancing 3.1 percent and Nissan Motor 7201.T gaining 1.6 percent.
SoftBank Group Corp 9984.T , which booked strong earnings for July-September, pulled back 2.0 percent after soaring as much as 4 percent in early trade.
It posted an operating profit of 705.7 billion yen ($6.23 billion), helped by higher valuations on high-tech bets from its Saudi-backed Vision Fund, compared with 395.6 billion yen a year earlier under different accounting standards.
However, traders said there was uncertainty about the Vision Fund's future amid a global outcry over the killing of a prominent journalist by Saudi Arabian security personnel. suppliers were sold after the Nikkei business daily reported on Monday evening that Apple Inc AAPL.O had told its smartphone assemblers Foxconn and Pegatron to halt plans for additional production lines dedicated to the iPhone XR it launched last month. Display Inc 6740.T dropped 3.7 percent, TDK Corp 6762.T shed 1.9 percent and Nitto Denko Corp 6988.T dropped 2.5 percent.
The broader Topix .TOPX gained 1.2 percent to 1,659.35.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or