Tokyo stocks close slightly higher

Tokyo stocks closed slightly higher on Tuesday, as the negative impact of US falls and weak Japanese GDP data was offset by purchases of shares with sound corporate earnings.

The benchmark Nikkei 225 index edged up 0.1 per cent, or 26.7 points, to 27,990.17, while the broader Topix index added 0.37 per cent, or 7.32 points, to 1,964.22.

The dollar fetched 140.19 yen in Asian trade, against 139.9 yen in New York late Monday.

“Trade lacked a sense of direction as falls in US shares weighed on the market, while individual shares with strong earnings results were bought,” strategist Hiromi Kanamaru of Daiwa Securities said.

Japan’s economy shrank 0.3 per cent in the three months to September due to slower-than-expected consumption, official data showed before the opening bell.

The latest data, which missed market expectations of 0.3 per cent growth, “also pushed down the market”, Kanamaru added.

Other analysts noted that hopes for Japan’s economy to grow again in the October-December quarter helped balance the negative impact from the GDP data.

Overnight, all three major US indexes closed lower.

Global equities had jumped last week after slower-than-expected US inflation data fuelled optimism that the Federal Reserve could ease its aggressive interest rate hikes meant to tackle inflation.