Nikkei slips from over 30-year high on profit-taking after rally; Toyota, chip shares jump

Nikkei slips from over 30-year high on profit-taking after rally; Toyota, chip shares jump

TOKYO: Japan’s stock benchmark snapped a four-session rally on Friday, slipping from a more than 30-year high hit in the previous session, as investors booked profits but gains in Toyota Motor and chip shares capped the losses.

Nikkei share average edged down 0.14 per cent to close at 29,520.07, after hitting a fresh high since August 1990 on Wednesday. The broader Topix inched up 0.04 per cent to end at 1,931.68.

Markets were closed on Thursday for a public holiday.

“Investors are taking a pause as they wait for the market price to consolidate after a recent sharp rise,” said Koichi Kurose, chief strategist at Resona Asset Management.

“The gain in the past few weeks was led by optimism for each individual company, not by the growth for overall industries. Investors are waiting to confirm whether the recovery is true.”

Shipping companies led the Nikkei declines, with Nippon Yusen losing 4.7 per cent, Kawasaki Kisen falling 4.45 per cent and Mitsui OSK Lines falling 4.67 per cent.

Toyota Motor jumped 3.48 per cent, after the automaker said on Wednesday after markets closed that it has up to four-month of stockpile of chips and was not immediately expecting a global chip shortage to hit production. It raised its full-year earnings forecast by a bigger-than-expected 54 per cent.

But its rivals’ shares fell, with Honda Motor falling 3.55 per cent and Nissan Motor losing 3.87 per cent.

Chip-related shares gained after Philadelphia semiconductor index hit record highs overnight, as Bloomberg News reported that U.S. President Joe Biden‘s administration had pledged aggressive steps to address chip shortage.

Tokyo Electron and Sumco jumped 3.67 per cent, and Advantest gained 3.86 per cent.

Renesas Electronics rose 3.39 per cent after it posted a 45.6 billion yen ($434.99 million) annual net profit, rebounding a 6.3 billion yen loss year ago.

Source link


Please enter your comment!
Please enter your name here