Japanese stocks rise as auto stocks rise, boosted by strong earnings expectations

Japanese stocks rose on Wednesday, supported by a rebound in the auto sector after a report by analysts gave positive expectations for the sector’s profits, but limited cautious gains in trading ahead of the monthly data on US employment in the non-farm sectors.

The Japanese Nikkei index rose 0.65 percent to close at 27,457.89 points. The broader Topix index rose 1.36 percent to record 1,938.64 points.

Major US stock indexes closed lower overnight on Tuesday as turmoil in oil markets kept the focus on rising inflation.

Nissan Motor shares rose 7.77 percent, Toyota Motor shares 3.53 percent, and Honda Motor shares 4.3 percent.

Analysts from JP Morgan said in a report that the Japanese auto sector is expected to achieve record profits this year after it raised vehicle prices and cut costs to reduce the impact of high inflation.

The prices of 196 shares on the Nikkei index rose and the prices of 27 shares declined.