Japanese stocks rise as Toyota and Sony gains offset tech losses

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TOKYO, Jan. 5 (Reuters) – Japanese stocks edged higher on Wednesday, as gains at Toyota Motor (7203.T) and Sony Group (6758.T) were offset by weak performance from tech heavyweights and a massive sell-off of expensive growth stocks driven by rising US Treasury yields.

As of 02:18 GMT, the Nikkei stock average (.N225) was up 0.03% to 29,312.00, after falling into negative territory several times, while the wider Topix (.TOPX) gained 0.36% at 2,037.25.

“With rising interest rates in the United States, investors have sold companies with high PERs (price-to-earnings ratios). These stocks are facing headwinds,” said Ikuo Mitsui, fund manager. at Aizawa Securities.

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“On the other hand, companies with strong fundamentals have attracted investors. For example, Toyota is a positive stock as production is expected to recover this year and the weaker yen may boost profits.”

Toyota, up 2.15%, extended its rally after the automaker overtook General Motors (GM.N) in the United States in 2021, marking the first time the Detroit-based automaker failed to dominate auto sales in the United States for a full year since 1931. read more

The Sony Group (6758.T) was up 3.24% as the game maker said it would start a new company for electric vehicles this spring. Read more

The insurance sector (.IINSU.T), up 2.72%, was the main winner among the 33 sub-indices of the stock exchange industry, in hopes that the rate hike is likely to fall. ” increase profits.

Tech heavyweights fell, with chip-based equipment maker Tokyo Electron (8035.T) losing 0.92% and medical services platform M3 (2413.T) losing 3.64%. Medical equipment maker Terumo fell 1.6%.

Komatsu (6301.T), up 4.56%, was the best performer on the Nikkei, followed by Mitsui Chemicals (4183.T), gaining 3.87%.

Daiichi Sankyo (4568.T) and Z Holdings Corp were among the worst performers on the Nikkei, losing 3.72% and 3.48% respectively.

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Reporting by Junko Fujita; Editing by Rashmi Aich

Our standards: Thomson Reuters Trust Principles.

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