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Japanese shares inch up led by cheap tech shares, COVID-19 measures cap gains

Published 05/07/2021, 10:42 AM
Updated 05/07/2021, 10:50 AM
© Reuters.

© Reuters.

TOKYO, May 7 (Reuters) - Japanese shares erased early losses
and edged up on Friday as investors scooped up cheap technology
stocks, while concerns around the slow recovery due to the
extension of COVID-19 emergency measures capped gains.
The Nikkei share average .N225 gained 0.3% to 29,419.23 by
0207 GMT, and the broader Topix .TOPX rose 0.53% to 1,937.56.
Both indexes inched down earlier in the session following their
biggest percentage gain in two weeks on Thursday.
"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," said Norihiro Fujito, chief investment
strategist, Mitsubishi UFJ Morgan Stanley Securities.
"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."
The Japanese government is seeking to extend a state of
emergency in Tokyo and three other areas until the end of May to
curb a surge in coronavirus cases. The technology sector advanced, with heavyweight Tokyo
Electron 8035.T jumping 2.79% as investors took a second look
at the positive outlook of the chip making equipment maker.

Semiconductor test equipment supplier Advantest 6857.T
rose 1.96%, while robot maker Fanuc 6954.T gained 0.94%.
On the other hand, Nintendo 7974.T lost 2.52% after the
game maker forecast annual sales of its Switch console to fall
11.5%. Hitachi 6501.T , up 1.91 %, was the biggest gainer among
the top 30 core Topix names, followed by Tokio Marine Holdings
8766.T , which rose 1.64%.
The underperformers among the Topix 30 were Nintendo,
followed by Sony Group 6758.T , losing 1.21%.
There were 168 advancers on the Nikkei index against 57
decliners.



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