Japan shares slip for third day; all eyes on U.S. stimulus debate

TOKYO, Dec 8 (Reuters) - Japanese shares ended lower for the
third straight session on Tuesday, as a month-long rally ran out
of gas, with investors awaiting U.S. lawmakers' decision on a
fresh COVID-19 pandemic relief package.
The Nikkei share average .N225 lost 0.30% to close at
26,467.08. The broader Topix .TOPX shed 0.11% to 1,758.81,
after touching its lowest since Nov. 20 earlier in the session.
The U.S. Congress will vote this week on a one-week stopgap
funding bill to provide more time for lawmakers to reach a deal
on coronavirus relief and an overarching spending bill to avoid
a government shutdown. Japan will compile a fresh 73.6 trillion yen ($708 billion)
economic stimulus package to speed up the country's recovery
from its deep coronavirus slump, Prime Minister Yoshihide Suga
said. Overall sentiment remained upbeat as investors expect the
global economic recovery to continue, with COVID-19 vaccines
look set to be rolled out soon and stimulate consumption
worldwide.
"The global manufacturing cycle is about to enter an
expansion phase from contraction. For value shares, including a
lot of Japanese shares, that is the phase when they historically
performed the best," said Shusuke Yamada, chief Japan FX and
equity strategist at Bank of America.
Hydrogen product maker Iwatani 8088.T jumped 10.3% after
the Nikkei business daily reported that Japan was likely to set
a target to expand the use of hydrogen to 10 million tonne by
2030 to meet its emission goal. Sekisui House 1928.T rose 4.3% after the housing maker's
earnings beat estimates. Many tech-related shares gained, with Keyence 6861.T
rising 2.1%, while Nintendo 7974.T and Murata Manufacturing
6981.T rising 1.1% and 0.5%, respectively.
Drugmakers underperformed, with Daiichi Sankyo 4568.T and
Astellas Pharma 4503.T losing 3.2% and 2.0%, respectively.
The index of Mothers start-up market .MTHR managed to
bounce back to end 1.4% higher, after briefly falling below its
100-day moving average for the first time since late April.