TOKYO, July 27 (Reuters) - Japanese equities rose on
Tuesday, tracking overnight gains in Wall Street as investors
cheered upbeat corporate earnings, though caution ahead of this
week's U.S. Federal Reserve policy meeting kept the domestic
market in check.
The Nikkei share average was up 0.35% at 27,932.08,
after scaling above the key 28,000 level for the second day. The
index hasn't closed above that level since July 16.
The broader Topix added 0.47% to 1,934.65. The Topix
value index rose 0.69%, outpacing the growth index's
Among Topix sub-sectors, non-ferrous metals
rallied the most with a 2.52% climb. The iron and steel index
rose 1.94%, followed by a 1.88% jump in the mining
"The overall strong earnings from corporate America have
investors thinking the U.S. recovery is on track, and that
should also be a plus for Japan's economy, so value stocks are
rising," Masahiro Ichikawa, chief market strategist at Sumitomo
Mitsui DS Asset Management said.
The Fed meeting starts later in the day, and all eyes may be
on whether the U.S. central bank expresses any new concerns
about high inflation when it concludes its gathering on
"At 28,000 though, investors are adopting a wait-and-see
stance before trying to take Nikkei higher," he said, as the
earnings season picked up pace in the United States and Japan.
The vast majority of second-quarter U.S. earnings have
handily beaten analysts' expectations so far, bumping up the
already huge projected growth for the second quarter, according
to Refinitiv data.
On the Nikkei, Sumitomo Metal Mining Co led gains
with a 4.74% advance, followed by a 4.36% rise in Fujikura
and a 3.61% increase in Mitsui Mining and Smelting
Rakuten Group led the losers, diving 7.62% after
ratings company S&P downgraded the e-commerce firm, citing
souring finances tied to the launch of its mobile phone
(Reporting by Kevin Buckland in Tokyo, Editing by Sherry