Japan Shares Close Higher Thanks to Positive Corporate Earnings

Japanese shares closed higher on Thursday, as Nissan Motor and some semiconductor companies reported surprisingly strong profits, while investors were relieved after the US Federal Reserve indicated it was in no hurry to cut monetary easing.

The Nikkei rose 0.73% to 27,782.42 points, while the broader TOPIX index closed up 0.41% to 1927.43 points.

US Federal Reserve Chairman Jerome Powell said the US jobs market still needed to be given room to recover before the time came for the Fed to withdraw its economic support, which supported the market.

Positive profits overshadowed fears of an exacerbation of the pandemic, after daily cases of the Coronavirus reached a high level in Japan and its capital, Tokyo, which is currently hosting the Olympic Games.

Nissan Motor stock gained 5.76% after the automaker announced a surprise operating profit for the first quarter and raised its expectations, predicting a return to a net profit after two consecutive years of losses.