Nikkei slumps on month-end selling, fears over retail volatility

TOKYO, Jan 29 (Reuters) - Japanese shares tumbled for a
second day on Friday, giving up early gains, as a boost from
technology companies reporting upbeat earnings was overshadowed
by investors' profit-taking and rebalancing at the end of month.
Investors grew nervous about further market turbulences as
retail trading frenzy boosts market volatility and talk of more
position unwinding by damaged players.
Japan's Nikkei share average .N225 fell 1.89% to
27,663.39, marking its biggest fall since July 31 and slipping
below its 25-day moving average price. The broader Topix .TOPX
dropped 1.64% to 1,808.78.
The losses accelerated after Citron Research, a
short-selling hedge fund caught in the short-squeezing of
Gamestop GME.N shares, said it will make a major announcement
later in the day.
Recent gainers such as Canon 7751.T fell 7.4% even as the
maker of camera and printer announced a solid earnings growth in
the last quarter as expected. Chip-related firms that announced robust earnings also fell.
Advantest 6857.T fell 1.9%, erasing earlier gains of 5.1%
after the company raised its profit forecast for the year ending
in March, citing strong demand for its chip-testing machines.
Tokyo Electron 8035.T slipped 4.9%, reversing gains of
2.4% after the chip manufacturing machine maker hiked its annual
guidance.
"It appears pension funds are reducing their positions as
they change their allocation at the end of month," said a trader
at a Japanese brokerage.
However, some companies managed to maintain their share
gains after reporting strong results. Among tech stocks, Fujitsu
6702.T gained 1.5% and Shinko Electric 6967.T rose 7.2%.
Nomura Real Estate 3231.T rose 6.7% and Oriental Land
4661.T gained 1.3% following results which showed a
stronger-than-expected recovery of the Tokyo Disney Resort.
JCR Pharma extended gains to a third day, rising 10.8%, as
its upbeat earnings on Thursday added to the bullish mood
spurred by the news that AstraZeneca AZN.L will license the
firm to produce some 90 million doses of its COVID-19 vaccine.