Nikkei changes course and closes higher on strong corporate outlook

The Japanese Nikkei index changed course and closed higher on Friday, as investors snapped shares in hopes of companies posting solid profits, despite selling in the broader Asian markets amid concerns about China strengthening its tough policy in the face of the Coronavirus.

The Nikkei closed up 0.69 percent at 27,003.56 points, after moving in the negative range for most of the session. The broader Topix index rose 0.93 percent to 1915.91 points.

Japanese markets opened lower after a three-day holiday, tracking US stocks that closed sharply lower overnight on broad selling as sentiment waned in the face of concerns that the previous day’s US interest rate hike would not be enough to stem rising inflation.

Investors have bought resilient stocks amid inflation, such as those linked to commodities and banks. For example, shares of oil exploration companies jumped 4.56 percent with the rise in crude prices, while shares of banks rose 2.52 percent amid rising US Treasury yields.

Toyota Motor shares rose 2.15 percent, providing the biggest boost to the Topix index. The Trading company Mitsui & Co. jumped 6.08 percent, and Mitsubishi UFJ Financial Group climbed 3.08 percent.

Tokyo Electric Power Holdings jumped 16.23 percent, the top gainer on the Nikkei index, after Prime Minister Fumio Kishida said in London that Japan would use nuclear reactors to reduce dependence on Russian energy.