TOKYO, May 21 (Reuters) - Japan's Nikkei share average was
little changed by midday on Thursday after profit-taking pulled
shares down from the 2-1/2-month high hit earlier in the
session.
The Nikkei share average .N225 was down 0.05% at
20,583.95, after rising as much as 20,734.91, its highest level
since March 6. The broader Topix .TOPX lost 0.11% to 1,493.06.
Although the market has rallied on hopes of a quick economic
recovery following countries' move to ease coronavirus
restrictions, investors have noted the market's valuations are
getting stretched.
The Nikkei has rallied 8.8% so far this quarter after
suffering a 20% loss in the previous quarter on worries about
severe economic damages from the COVID-19 pandemic.
But there is a strong resistance around 20,800, where
Nikkei's price-to-book ratio is estimated be around one,
analysts said.
Among stocks, Bandai Namco 7832.T fell 3.1% after the toy
and game maker reported a drop in profits in the financial year
that ended in March.
Shimadzu 7701.T declined 2.9% as the precision machine
maker's earnings in the last quarter and its outlook for the
current year fell short of market expectations.
Many railway companies and cosmetic makers also tumbled,
pressured by worries about a reduction in demand as more people
work from home.
Keio 9008.T fell 2.4%, Tokyo Corp 9005.T lost 1.8%, and
East Japan Railway 9020.T shed 1.3%.
Among cosmetic makers, Shiseido 4911.T slid 1.4%.
On the other hand, JXTG 5020.T extended gains after it
said on Wednesday it expected a recovery in profit this
financial year after reporting a loss in the previous year,
which ended in March.
Taiheiyo Cement 5233.T gained 12.5% and Sompo Holdings
8630.T rose 7.0% following their share buyback announcements.