Nikkei inches up; investors cautious as domestic COVID-19 cases spike

SYDNEY, July 3 (Reuters) - Japanese shares edged up on
Friday as U.S. jobs data provided assurance that recovery in the
world's largest economy was well under way, though investors
maintained a cautious stance a day after Tokyo reported a spike
in COVID-19 cases.
The benchmark Nikkei average .N225 added 0.3% to 22,220.33
by the midday break, taking a positive cue from a record surge
in U.S. June payrolls and Wall Street's overnight rally.
.N However, the Nikkei was down 1.3% so far this week.
On Thursday, Japan's capital city of Tokyo confirmed 107
fresh COVID-19 cases, its highest daily tally in two months.
Although chief cabinet secretary said there was no need to
reintroduce a state of emergency, traders said some fund
managers were adjusting portfolios for a possible redeployment
of the virus-induced restrictions.
The so-called "stay-at-home" stocks, beneficiaries of
lockdowns or other restrictions on outings, led the gains on
Friday, with Nintendo Co Ltd 7974.T advancing 3% and M3 Inc
2413.T jumping 3.5%.
On the flipside, travel-related ANA Holdings Inc 9202.%
and Kyushu Railway Co 9142.T lost 2.1% and 1.5%, respectively,
while Tokyo Disney Resort operator Oriental Land Co Ltd 4661.T
dropped 1.3%.
The broader Topix .TOPX added a marginal 0.1% to 1,544.95
by the midday recess, with about two-thirds of the 33 sector
sub-indexes on the Tokyo exchange trading in negative territory,
however.
Electric power companies came under pressure on media
reports that the Japanese government is looking to suspend or
close as many as 100 older, inefficient coal-fired power plants
by around 2030.
Tokyo Electric Power Company Holdings (TEPCO) 9501.T shed
1.5% and Shikoku Electric Power Co Ltd 9507.T dropped 1.4%.
Elsewhere, the index of Mothers start-up market .MTHR
bounced back 2.6%, partially clawing back from a massive 5.0%
slide on Thursday.