Tokyo stocks ended higher Thursday, extending their winning streak to three days, driven by solid earnings reports from some major Japanese companies and firm tech shares following gains in their U.S. counterparts overnight.

The 225-issue Nikkei Stock Average ended up 116.21 points, or 0.42 percent, from Wednesday at 27,696.08. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 10.39 points, or 0.53 percent, higher at 1,962.61.

Gainers were led by construction, electric appliance and chemical issues.

The U.S. dollar was firm in the upper 115 yen range as the Japanese currency, seen as a safe-haven asset, fell on overnight advances in U.S. and European markets, dealers said.

The benchmark Nikkei index was in positive territory for most of the day. Market participants scooped up shares of companies that released solid earnings Wednesday, including automaker Honda Motor Co.

"Investor sentiment was lifted as, overall, many firms have recently reported solid earnings," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co.

"Even companies that were hit severely by the coronavirus pandemic, including railway operators and department stores, have shown that they have recovered from their worst phase," he added.

Advances by heavyweight technology issues also supported the market. Tokyo Electron rose 1,020 yen, or 1.8 percent, to 57,150 yen on anticipation of strong earnings by the chip-making equipment maker later in the day.

Still, some investors were quick to lock in gains ahead of a three-day weekend in Japan and the release later Thursday of U.S. consumer price index data for January, a key gauge of inflation. A higher-than-expected index reading could push the U.S. Federal Reserve to tighten monetary policy faster than anticipated, brokers said.

On the First Section, advancing issues outnumbered decliners 1,447 to 636, while 100 ended unchanged.

Honda Motor jumped 192 yen, or 5.6 percent, to 3,613 yen after raising its full-year net profit forecast on cost-cutting efforts amid an ongoing shortage of chips.

Shiseido rose 409 yen, or 6.8 percent, to 6,453 yen after releasing firm results for the January-December period, supported by solid sales in the United States and Europe.

Trading volume on the main section fell to 1,396.24 million shares from Wednesday's 1,502.67 million shares.

==Kyodo

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