TOKYO, Oct. 25 (Xinhua) -- Japan's Nikkei stock index closed higher Tuesday on hopes that the U.S. Federal Reserve will slow the pace of its rate hikes in December and expectations a weak yen may help some firms as earnings season begins.
The 225-issue Nikkei Stock Average gained 275.38 points, or 1.02 percent, from Monday to close the day at 27,250.28.
The broader Topix index, meanwhile, added 19.95 points, or 1.06 percent, to finish at 1,907.14.
Local brokers said Japan's likely intervention into the currency market on Monday to curb the yen's slide against the U.S. dollar, following two previous yen-buying operations, led to some investor consternation, despite the dollar's quick rebound.
"Investors suffered damage after the suspected intervention on Monday, so they are refraining from buying and selling. It shows that the intervention had an effect on the market," Yuji Saito, head of the foreign exchange department at Credit Agricole Corporate & Investment Bank in Tokyo, was quoted as saying.
Other strategists noted, however, that as earnings season here swings into gear, a weak yen could favor companies exposed to overseas markets, whose profits and outlooks could be lifted.
Electric motor manufacturer, Nidec, for example, announced record sales and net profit for the first half of the business year ending March, owing to a weak yen, climbing 5 percent Tuesday.
"Nidec's earnings were welcomed by the market," Kazuo Kamitani, an equities strategist at Nomura Securities was quoted as saying.
"With the effect of the weak yen at record highs and the solid growth in electronic vehicle sales, we can't say this will have a big influence on the entire market, but it should help firm expectations for upcoming earnings reports," Kamitani said.
By the close of play, oil and coal product, marine transportation, and rubber product issues comprised those that gained the most.
Nikkei heavyweight SoftBank Group helped buoy the broader market, jumping 3.8 percent, while shipping-oriented shares rallied on hopes of increased demand if the Fed's hawkish monetary policy tightening is eased.
Among these, Kawasaki Kisen leaped 3.6 percent, while Nippon Yusen ended the day 3.0 percent higher.
Bucking the upward trend, Chugai Pharmaceutical Co. Ltd. was a notable drag, dropping 3.5 percent, despite announcing an increase in operating profit in the April-September period.
Issues that rose outpaced those that fell by 1,353 to 406 on the Prime Market, while 78 ended the day unchanged, with 1,040.08 million shares changing hands, rising from Monday's volume of 1,030.97 million shares.
The turnover on the second trading day of the week came to 2,799.07 billion yen (18.80 billion U.S. dollars). ■
