Japan Stocks extend gains

Japanese share market finished session slight higher on Thursday, 28 July 2022, on tracking positive lead from Wall Street overnight on expectations of a slowdown in rate hikes in the United States. But the upside was limited amid concerns over domestic corporate outlook and the strengthening of yen in the fallout from the Fed decision.

At closing bell, the 225-issue Nikkei Stock Average was up by 99.73 points, or 0.36%, to 27,815.48. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 3.10 points, or 0.16%, to 1,948.85.

The Federal Reserve on Wednesday again raised the benchmark interest rate by three-quarters of a percentage point in its ongoing battle to tamp down raging price pressures that are squeezing Americans. The US Fed Chairman Jerome Powell stated on Wednesday that the central bank could "slow the pace of interest rate increases," depending on the impact of its monetary policy on the economy and inflation.

Exporter shares declined as the yen's rise against the dollar prompted investors to lock in profits. A stronger yen trims profits exporters earn overseas when repatriated. Toyota Motor fell 44.0 yen, or 2.0 percent, to 2,125.0 yen, and air conditioning manufacturer Daikin Industries was down 360 yen, or 1.5 percent, at 22,900 yen.

Mitsubishi Motors shares closed higher after it revised up full-year earnings forecast and reported that first-quarter net profit expanded more than six times year-on-year.

CURRENCY NEWS: The U.S. dollar weakened further to the lower 135 yen range in Tokyo. At 5 p.m., the dollar fetched 135.57-59 yen compared with 136.56-66 yen in New York and 136.97-99 yen in Tokyo at 5 p.m. on Wednesday.

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