Japanese stocks rally on bargain hunt, but US CPI cautiously limits gains

Japanese stocks rose on Tuesday, dragging Nasdaq futures and investors buying back battered stocks, including technology shares, although gains were limited by caution over data. More US inflation is expected at the end of the week. At 02:20 GMT, the Nikkei stock average was up 0.4% to 27,360.57, after surging 0.8% higher on the day. The broader topix rose 0.5% to 1,935.67. The Nikkei is down about 5% so far this year after three straight years of gains, while the Topix is ​​down 2.8%. “Japanese stocks rebounded as Nasdaq futures rallied (during Asian hours), but gains were capped as investors were cautious ahead of the following US (consumption) CPI report.

Strong labor data,” said Takatoshi Itoshima, strategist at Pictet Asset Gestion. Clothing store owner Uniqlo Fast Retailing led the Nikkei gains, followed by air conditioner maker Daikin Industries and phone company KDDI. Rapid retail increased 0.75%, Daikin increased 1.68% and KDDI increased 1.84%. Tech startup investors SoftBank Group rallied 0.34% ahead of earnings announcements later in the day. Shionogi & Co rose 0.4 points as the country’s prime minister said the government would consider conditional pre-approval for the drugmaker’s COVID19 oral treatment. Game maker Nintendo lost 1.57% and was the worst performer in the Topix 30, followed by camera and audio maker Sony Group, down 1.03%. The Nikkei has 152 gains versus 70 declines. The volume of shares traded on the main board of the Tokyo Stock Exchange was 0.59 billion, compared with an average of 1.18 billion over the past 30 days.