Japanese shares ended slightly higher on Tuesday, erasing most of early gains due to lack of any major market moving cues, but gains in companies with upbeat outlook underpinned the overall sentiment.
The Nikkei share average gained 0.11% to close at 29,808.12, after having gained as much as 0.6%. The broader Topix also edged up 0.11% to 2,050.83.
“Shares moved earlier in the session due to expectation for the talks between the U.S. and China but otherwise it was hard to find reasons for trading today,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
“But the market was lifted by gains of chip-related shares and auto stocks whose outlook is as not as investors had initially expected.”
Throughout the session, investors kept an eye on a key meeting between U.S. President Joe Biden and Chinese leader Xi Jinping.
Both Nikkei and Topix rose after a report from Chinese state media said that China’s President Xi Jinping told U.S.
President Biden at a virtual meeting that the two countries should strengthen communication and co-exist peacefully.
Automaker Subaru jumped 5.22% after JPMorgan Securities raised its rating and a target share price.
Toyota Motor gained 1.88% as the automaker said last week it began making up for production lost from supply shortages in December to keep its plan of producing 9 million vehicles worldwide during the financial year.
Chip-related Tokyo Electron and Murata Manufacturing rose 1.39% and 1.82%, respectively.
Insurers climbed as U.S. Treasury yields gained, with T&D Holdings rising 2.57% and Dai-ichi Life Holdings 1.69%.
Staffing agency Recruit Holdings, which has built footsteps in the U.S. through employment site Indeed, fell 3.31% even after posting a jump in half-year profit.