By Stanley White
TOKYO, Feb 10 (Reuters) - Japanese stocks ended higher in
choppy trading on Wednesday after positive earnings from market
bellwethers Toyota and Honda highlighted the improving outlook
for the global economy.
The Nikkei index .N225 ended up 0.19% at 29,562.93, with
consumer cyclical and technology shares leading gains. The
broader Topix .TOPX rose 0.27% to 1,930.82.
This year, the Nikkei has rallied more than 7% to its
highest level since 1990 as investors bought shares of Japanese
exporters which are expected to benefit as the global economy
recovers from the COVID-19 pandemic.
Stocks have risen so quickly that some traders warn that a
correction is overdue, but most analysts say the Nikkei is still
on track to reclaim the psychological important 30,000 mark
because the earnings season so far been better than expected.
"A lot of investors are buying on dips, which shows that the
mood is positive," said Masahiro Yamaguchi, head of investment
research at SMBC Trust Bank.
"The global economic recovery will become more concrete as
the year progresses, which benefits Japanese companies that are
sensitive to global growth."
Toyota Motor Co 7203.T ended up 1.7% after briefly
touching its highest level in more than five years as the
company reported a bigger-than-expected increase in earnings and
raised its forecasts. Another prominent gainer was Honda Motor Co Ltd 7267.T ,
which rose 5.14%, after the automaker upgraded its earnings
forecasts. The biggest decliner on the Nikkei was Japan Tobacco Inc
2914.T , which tumbled by 7.46%, after cutting its dividend and
announcing restructuring.
So far this earnings season, 80% of Japanese companies have
beaten forecasts for the December quarter, according to
Refinitiv data. There were 116 advancers on the Nikkei index against 102
decliners.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 1.16 billion, compared to the average of
1.23 billion in the past 30 days.