TOKYO, April 24 (Xinhua) -- Japan's benchmark Nikkei stock index ended higher Monday as transportation issues advanced following ANA Holdings raising its profit outlook, although gains were capped ahead of further earnings and the Bank of Japan's meeting later this week.
The 225-issue Nikkei Stock Average added 29.15 points, or 0.10 percent, from Friday to close the day at 28,593.52.
The broader Topix index, meanwhile, gained 2.28 points, or 0.11 percent, to finish at 2,037.34.
Local dealers said the market mood was lifted following ANA Holdings on Friday announcing an upgrade to its net profit guidance for the fiscal year ended March 31.
They said the solid outlook from ANA Holdings raised hopes other transportation and tourism-linked issues would also report upbeat profits and outlooks as earnings season swings into gear later this week.
The carrier said that as a result of Japan's borders being fully reopened for international flights, it now expects its net profit to rise from 60 billion yen (447 million U.S. dollars) to to 89 billion yen (663 million U.S. dollars) in the recording period stated.
"Tourism shares were bought spurred by ANA Holding's upward revision of its earnings forecast, fueling expectations that other related companies could raise their forecasts as well," Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute, was quoted as saying.
Exporters also got a boost from the U.S. dollar gaining on the yen. Companies here with a broad exposure to overseas markets cheer a weaker yen as profits are increased when repatriated and price competitiveness enhanced in foreign markets, strategists here said.
But investors opted not to chase the market's upside higher ahead of the Bank of Japan's two-day policy setting meeting, the first to be chaired by new governor Kazuo Ueda, concluding Friday, brokers here said.
They added that while the predominant view was that the central bank would maintain its monetary easing policy, some investors refrained from making bold moves in cases of any surprises.
"It's very likely that Japanese stock investors will shift to a wait-and-see stance. Moves are likely to be relatively muted," Maki Sawada, a strategist at Nomura Securities, was quoted as saying.
ANA Holdings helped lift the transportation sector, with the parent company of All Nippon Airways rising 3.7 percent, while rival Japan Airlines gained 2.0 percent.
West Japan Railway, for its part, ended 2.2 percent higher, and department store operators found favor on hopes for a continued rise in inbound tourists, with Marui Group Co. Ltd. adding 1.7 percent.
Semiconductor-linked issues weighed on the market, however, mirroring their U.S. peers' losses on Wall Street late last week, with chip-making equipment maker Tokyo Electron dropping 1.9 percent, while chip-testing equipment manufacturer Advantest slumped 2.3 percent.
Exporters found favor on a comparatively weak yen, however, with Toshiba edging 0.1 percent higher, while Honda Motor added 0.3 percent.
By the close of play, air transportation, land transportation and transportation equipment issues comprised those that gained the most.
The turnover on the Prime Market on the first trading day of the week came to 2,050.76 billion yen (15.26 billion U.S. dollars). ■
