Japan Stocks rebound in thin trading

Japanese share market finished higher in thin trading on Wednesday, 27 July 2022, on strong technology shares on following better than expected earnings release by Google and Microsoft.

However, market gains were limited after the International Monetary Fund cut its outlook for global economic growth in 2022 by 0.4 percentage point from its April forecast due to Russia's war in Ukraine and China's COVID-19 lockdowns.

Also, most investors sat on the sidelines ahead of the release later in the day of the outcome of a U.S. Federal Reserve policy setting meeting.

At closing bell, the 225-issue Nikkei Stock Average was up by 60.54 points, or 0.22%, to 27,715.75. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 2.58 points, or 0.13%, to 1,945.75.

Chip-testing equipment maker Advantest was up 2.3% and chip-making equipment manufacturer Tokyo Electron climbed 3.1%. Hitachi added 0.3% but Sony Group closed down 0.6%. Camera maker Canon fell over 1% despite raising its full-year operating profit forecast.

Telecoms firm KDDI ended up 0.2%, after reports said the Japanese government will issue administrative guidance to the firm regarding a technical glitch that took three days to fix and affected millions of customers this month.

CURRENCY NEWS: The U.S. dollar moved mostly around the 137 yen line in the absence of active trading before the Fed is widely expected to decide on a 0.75 percentage point interest rate increase. At 5 p.m., the dollar fetched 136.97-99 yen compared with 136.90-137.00 yen in New York and 136.65-75 yen in Tokyo at 5 p.m. on Tuesday.

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