Japan Shares Close Higher on Wall Street’s Footsteps

Japanese stocks closed higher on Wednesday after a rally led by the technology sector overnight on Wall Street, as investors bought shares of companies that reported strong results with sentiment rising further thanks to the approaching earnings season.

The Nikkei index advanced 1.08 percent to close at 27,579.87 points, while the broader Topix index rose 0.94 percent to 1952.22 points.

Wall Street closed sharply higher overnight thanks to big tech companies like Apple (NASDAQ:AAPL) and Microsoft, while a jump in Treasury yields sent bank shares higher ahead of key inflation data this week.

Heavy equipment maker IHI rose 10.05 percent and was the best performer on the Nikkei index, after the company tripled its annual operating profit forecast.

Nissan Motor Co. rose 5.67 percent after the automaker raised its full-year profit forecast.

Toyota Motor stock rose 0.94 percent even as the automaker cut its annual production target by an additional half a million cars, as the shortage of chips and sick leaves linked to the Covid-19 pandemic led to a decline in production.

Game developer DNA fell 6.98 percent, the worst performer on the Nikkei index, followed by Taihyu Cement, which lost 5.82 percent.