TOKYO, May 7 (Xinhua) -- Tokyo stocks closed higher Friday on Wall Street's upbeat overnight performance and some encouraging Japanese firms' earnings reports, although gains were again capped by concerns over Japan's extended and expanded COVID-19 state of emergency amid jitters ahead of U.S. jobs data for April.
Dealers here said investors sought out issues more favorably valued following their advance the previous day which saw investors selling for profits.
They added that firms reporting solid earnings and profit outlooks gained particularly traction, along with cyclical issues widely exposed to global economic trends on continued hopes for the worldwide recovery of the economy from the pandemic.
"The market rose too much yesterday so investors sold shares to book profits, but as soon as the indexes fell, they quickly started looking for bargains, particularly those which reported positive earnings," Norihiro Fujito, chief investment strategist, Mitsubishi UFJ Morgan Stanley Securities, was quoted as saying.
Other market strategists said that some investors were in a circumspect mood ahead of U.S. jobs data for April due out later in the day, owing to concerns that solid jobs data could lead to the U.S. Federal Reserve altering its monetary policy as was hinted at earlier this week.
"Some investors are concerned that robust jobs data could result in monetary stimulus tapering," Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Research Institute, was quoted as saying.
As for the extended and expanded state of emergency in urban areas in Japan until the end of the month, while the government's decision to enforce the stricter measures for longer and over a wider area in a bid to curb the spread of the virus had largely been factored in by investors, some concerns remained, brokers here said.
"But the gain was limited as investors were concerned that it could take some more time until Japan's economy will be normalized due to the extension of the state of emergency," Norihiro Fujito, chief investment strategist, Mitsubishi UFJ Morgan Stanley Securities, was quoted as saying.
As for the currency market, the U.S. dollar was pegged in the lower 109 yen range as traders eyed the upcoming U.S. jobs report.
The dollar was quoted at 109.14-16 yen at 5:00 p.m., compared with 109.03-13 yen in New York and 109.33-34 yen at 5:00 p.m. on Thursday in Tokyo.
The euro, meanwhile, fetched 1.2076-2078 dollars and 131.80-84 yen against 1.2060-2070 dollars and 131.53-63 yen in New York and 1.2024-2026 dollars and 131.46-50 yen in late Thursday afternoon trade in Tokyo.
By the close of play, iron and steel, marine transportation and insurance issues comprised those that gained the most.
Cyclical issues finding favor on hopes for the global economic recovery and demand returning included shipping firms.
Among these, Mitsui O.S.K. Lines rose 3.8 percent, while Kawasaki Kisen advanced 4.2 percent. Nippon Yusen, meanwhile, ended the day 2.6 percent higher.
High-tech issues closed higher as investors digested previously released earnings reports and outlooks that came in above median analysts' forecasts.
As such, Tokyo Electron added 2.4 percent, while Advantest gained 0.9 percent. Robotics maker Fanuc, meanwhile, ended the day 1.2 percent higher.
Issues that rose outpaced those that fell by 1,611 to 505 on the First Section, with 75 ending the day unchanged.
On the main section on Friday, 1,174.04 million shares changed hands, dropping from Thursday's volume of 1,526.11 million shares.
The turnover on the final trading day of the week came to 2,544.63 billion yen (23.29 billion U.S. dollars). Enditem