Nikkei retreats as investors lock in gains ahead of holiday

SYDNEY, April 28 (Reuters) - Japanese stocks slipped on
Tuesday as investors booked profits after a sharp gain in the
previous session, though a raft of solid corporate earnings and
strong forecasts helped cap losses.
The benchmark Nikkei average .N225 was down 0.6% at
19,661.05 by midday break, a day after the index posted gains of
2.7% and ahead of the Showa Day holiday on Wednesday.
The Nikkei volatility index .JNIV , considered a fear gauge
based on option pricing, dropped as much as 11.3% to a
1-1/2-month low of 30.9, reflecting a drop in market anxiety.
E-Mini futures for the S&P 500 ESc1 dipped 0.4% in Asian
trade also created an extra headwind to Japanese shares.
Losses, however, were limited after companies reported
better-than-expected earnings or forecasts.
Ibiden Co Ltd 4062.T soared 15.1% after the electronic
components maker forecast a 37.2% increase in operating profit
for the current business year through March 2021. Renesas Electronics Corp 6723.T jumped 7.7% after the
maker of semiconductors for cars recorded a net profit of 11.3
billion yen ($105 million) for the January-March quarter - a
positive surprise for many analysts. The broader Topix .TOPX retreated 0.5% to 1,439.59 by the
midday recess, with all but six of the 33 sector sub-indexes on
the Tokyo exchange trading lower.
Highly cyclical iron and steel .ISTEL.T , mining .IMING.T
and non-ferrous metals .INFRO.T were the three
worst-performing sector sub-indexes on the main bourse.
Elsewhere, Miraca Holdings Inc 4544.T jumped 9% after the
diagnostics and laboratory testing service provider's subsidiary
Fujirebio applied for government approval for Japan's first
antigen coronavirus testing kits. Shionogi & Co Ltd 4507.T climbed 3.3% after the drug maker
announced a plan to develop a vaccine for the coronavirus, with
an aim to begin clinical trials later this year. = 107.2800 yen)