Japanese shares snap five-day run of lossesBusiness | 21 Jul 2021 2:55 pm
Japanese shares snapped a five-day losing streak on Wednesday, as investors bought stocks on dips over cautious earnings optimism ahead of a long weekend that will mark the start of the Tokyo 2020 Olympics, Reuters reports.
The Nikkei share average closed 0.58 percent higher at 27,548.00, bouncing back from Tuesday's six-month low, though it failed to stay above a key chart level from its 200-day moving average, which sat at 27,712. The broader Topix gained by 0.82 percent at 1,904.41.
The market was supported by cheap valuations, with the Topix trading at 15.3 times its expected earnings - the cheapest level in more than a year. Upbeat guidance earlier this month from companies such as Yaskawa Electric and Canon have raised hopes of more positive earnings revisions as the corporate results season in Japan gets into full swing from next week.
NOK Corp rallied by 5.8 percent after the maker of oil seals bumped up its profit outlook.