TOKYO, April 27 (Xinhua) -- Japan's benchmark Nikkei stock index closed marginally higher Thursday, as robust earnings and outlook reports from Japanese firms lifted the mood, although concerns remained over the health of the U.S. financial sector.
The 225-issue Nikkei Stock Average edged up 41.21 points, or 0.15 percent, from Wednesday to close the day at 28,457.68.
The broader Topix index, meanwhile, gained 8.61 points, or 0.43 percent, to finish at 2,032.51.
Dealers here said that early losses were erased as the market mood was brightened by domestic firms reporting solid earnings, raising the prospect of further upbeat profit and guidance reports this week.
"Investors simply reacted to the results and forecasts, buying positive shares and selling negative shares," Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Research Institute, was quoted as saying.
But strategists here noted that investors refrained from making big bets as concern remained over the health of the U.S. financial system, following some downbeat earnings reports from U.S. companies, following the failure of two U.S. banks last month.
San Francisco-based lender First Republic Bank reporting a sharp decline in deposits spooked global markets recently, they added. The embattled bank said its total deposits plunged 41 percent in the first quarter, sparking fears of further contagion in the U.S. banking sector.
Japan's Nomura Holdings Inc. reporting downbeat earnings, along with U.S. inflation data and the outcome of the Bank of Japan's two-day policy-setting meeting on Friday, led to some participants hitting the sidelines, investment analysts explained.
The Bank of Japan, under new governor Kazuo Ueda, is expected to stay pat on its ultra-low monetary policy for the time being, but the upcoming U.S. inflation data, on the heels of the U.S. consumer confidence index dropping to a nine-month low in April, may sway the U.S. Federal Reserve to continue hiking its rates following its meeting next week, analysts said.
Among issues gaining on solid earnings and outlooks, Canon Inc. climbed 5.2 percent, while car component maker Denso advanced 3.4 percent.
Hitachi Construction Machinery was another notable gainer, jumping 3.7 percent, after the heavy equipment maker reported a surge in its full-year operating profit and raised its guidance.
Nomura weighed, however, tumbling 7.2 percent, after reporting worse-than-expected earnings, with chip-testing equipment maker Advantest slumping 9.2 percent following its subpar earnings outlook.
By the close of play, transportation equipment, bank and rubber product-linked issues comprised those that gained the most.
The turnover on the Prime Market on the penultimate trading day of the week came to 3,006.64 billion yen (about 22.46 billion U.S. dollars). ■