Tokyo stocks gained Wednesday, led by issues of companies that released their earnings reports the day before.

The 225-issue Nikkei average climbed 62.08 points, or 0.21%, to end at 29,053.97, after shedding 134.34 points Tuesday.

The Topix index of all first section issues advanced 5.51 points, or 0.29%, to finish at 1,909.06, following a 14.60-point drop the previous day.

The Tokyo market began on a weak note as players took to position-squaring selling ahead of the Golden Week holiday period, starting Thursday.

Stocks headed north later in the morning thanks to buying of firms which released their earnings results and forecasts Tuesday such as industrial robot-maker Fanuc and electronics maker Fuji Electric.

The market moved narrowly in the afternoon as investors sat out trading ahead of U.S. President Joe Biden’s speech on his new economic package later Wednesday, as well as the end of the U.S. Federal Reserve’s Federal Open Market Committee meeting.

Hirohumi Yamamoto, strategist at Toyo Securities Co., said that issues such as Fanuc and Advantest rose despite their earnings forecasts failing to meet market expectations the day before, buoyed by hopes for upward revisions in the future.

“Investors believe that the firms are especially conservative in their projections due to the coronavirus resurgence in Japan and that they will post rosier outlooks later on,” Yamamoto said. “Such expectations fueled buybacks after the initial bout of selling ran its course.”

Kazuo Kamitani, strategist at Nomura Securities Co., noted that U.S. and Japanese markets were not moving in lockstep as they had been until recently, pinning the cause on the different extents of vaccinations in the two countries.

On the TSE first section, decliners outnumbered gainers 1,481 to 628 despite the rises in the Nikkei and Topix indexes, while 79 issues were unchanged. Volume grew to 1.237 billion shares from Tuesday’s 1.159 billion shares.

Fuji Electric rocketed 12.63% after beating market consensus for both the earnings results for the fiscal year that ended last March and the earnings forecasts for the ongoing fiscal year.

Fanuc and Advantest climbed 2.03% and 0.38%, respectively.

Auto parts supplier Denso jumped after releasing in the morning strong earnings estimates for the fiscal year ending next March.

On the other hand, Kyocera sank 5.48% on a weaker-than-expected operating profit forecast for the current fiscal year.

Other losers included drugmaker Daiichi Sankyo and railway operator JR Tokai.

In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average advanced 60 points to end at 29,050.

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