TOKYO, Feb 3 Reuters Japanese shares rose on Wednesday, with transport stocks leading gains, as Wall Streets techdriven rally overnight and strong domestic earnings forecasts boosted market sentiment.
The Nikkei share average edged up 0.56 to 28,520.55 as of 0204 GMT, while the broader Topix gained 0.70 to 1860.12.
Robust earnings of global IT firms have boosted investor expectations for better earnings of Japanese companies, while worries about a shortsqueeze triggered by U.S. retail investors had been erased, said Koichi Kurose, chief strategist at Resona Asset Management.
U.S. stocks finished sharply higher for a second straight day overnight, helped by gains in Amazon.com and Googleparent Alphabet ahead of their results and by optimism over progress on a U.S. pandemic relief package.
Mitsubishi Motor, up 12.15, led gains on the Nikkei 225 index after it cut its annual net loss forecast on Tuesday.
Panasonic rose 3.11 after the electronics conglomerate said its battery business supplying Tesla Inc would be profitable this fiscal year, and raised its fullyear operating profit forecast by more than half.
Toyota Motor jumped 3.66 after its autoparts affiliates Denso and Aisin Seiki raised their outlook. Denso gained 3.26 and Aisin Seiki rose 1.9.
Pandemicbeaten transport shares gained, with West Japan Railway rising 5.19 and East Japan Railway gaining 3.47. Japan Airlines jumped 4.2 while ANA Holdings rose 1.7.
Transport shares were buoyed by hopes that a drop…