TOKYO, July 27 (Reuters) - Japan's Nikkei share average
struggled for direction on Monday, as a halt in United States
attacks on Iran pushed oil prices lower, though investors
avoided aggressive bets ahead of key earnings this week.
The benchmark Nikkei fluctuated between gains and
losses and was last down 0.22% at 64,472.09. The broader Topix
rose 0.51% to 4,031.75.
The U.S. suspended its bombing campaign on Iran after nearly
two weeks of heavy airstrikes, while a senior Iranian official
told Reuters Tehran would also halt its own attacks as long as
Washington did the same. Oil prices fell more than 5% on Monday
on expectations of a diplomatic off-ramp.
"Reduced concern over higher crude prices should support
Japanese shares overall, while buybacks are also expected in
stocks that had seen an increasingly corrective tone through
last week," said Takayuki Miyajima, senior economist at Sony
Financial Group.
"However, with major U.S. cloud companies due to report
earnings this week, investors may be reluctant to aggressively
chase the upside as they assess capital spending plans and the
monetisation of AI investment," he said.
Investors are focused on a busy week of earnings
announcements in the U.S. and Japan, as well as central bank
decisions. In Tokyo, chip-testing equipment maker Advantest ( ADTTF )
is due to report earnings on Wednesday, while memory
chipmaker Kioxia ( KXHCF ) is scheduled to report on Friday.
Market breadth was positive, with 173 advancers on the
Nikkei 225 against 52 decliners.
Kioxia ( KXHCF ) slid 7%, while cables and optical fibre
producer Fujikura ( FKURF ) lost 6.18%. Shin-Etsu Chemical ( SHECF )
, a global leader in silicon and chemical products, fell
as much as 6.13% after its full-year consolidated net profit
forecast missed market expectations.
By contrast, software testing and quality assurance services
provider Shift was the top gainer on the index, rising
7.04%, followed by consulting services provider BayCurrent ( BYCRF )
, gaining 6.04%, and online game publisher Nexon ( NEXOF )
, up by 5.68%.
(Reporting by Satoshi Sugiyama; Editing by Mrigank Dhaniwala)