© Reuters. A man wearing a mask looks at a screen showing the Nikkei in Tokyo, February 14, 2022. Photo: Kim Kyung-Hun / Reuters.
TOKYO (Reuters) – Japanese equities closed higher on Tuesday as investors reacted to some companies’ expectations for a strong performance, although Toyota Motor Co. fell after the company reported worse-than-expected earnings.
The benchmark index rose 0.33% to 27,678.92 points, while the broader Topix index gained 0.47% to 1,938.50 points.
Toyota shares fell 1.94% and put pressure on the Nikkei index after the company reported a 25% drop in earnings for the quarter ended September and cut its annual production target as carmakers are grappling with rising material costs and a chronic shortage of semiconductors.
On the other hand, Japan Tobacco jumped 8.73% and was the top gainer on the Nikkei index, after the cigarette and beverage manufacturer raised its annual profit forecast.
Shares of Panasonic Holdings were up 7.33%, despite the company’s operating profit falling 11% in the second quarter, at a time when the behemoth outperformed analysts’ expectations.
It is almost certain that the US central bank will raise interest rates by 75 basis points on Wednesday, but investors will be looking for any indication of when the Federal Reserve might start considering slowing the pace of future rate hikes.
(Prepared by Moataz Mohamed for the Arabic Bulletin)
