Japan's Nikkei inches up on Fast Retailing gain, but market outlook caution sets in

Chugai Pharmaceutical

18/02/2021 03:09

TOKYO, Feb 18 (Reuters) - Japan's Nikkei inched up on
Thursday, led by a sharp jump in Uniqlo-operator Fast Retailing,
but gains were capped as investors weighed the sustainability of
the benchmark's recent rally above 30,000.
    The Nikkei share average  .N225  edged up 0.15% to 30,336.69
by 0214 GMT, while the broader Topix  .TOPX  fell 0.58% to
1950.12. On Monday, Nikkei reclaimed the 30,000 level for the
first time since 1990 on rising expectations for a rebound in
the economy.
    "Investors want to evaluate whether Nikkei's rally to the
psychologically important 30,000 mark reflects the real market
or not," said Soichiro Matsumoto, chief investment officer Japan
at Credit Suisse Private Banking.
    "They are trying to see if the market maintains the momentum
toward the end of the fiscal year in March and beyond." 
    Apparel maker Fast Retailing  9983.T , up over 4%, was the
top gainer on Thursday, contributing to a rise of 152 points, or
0.5% of the index. 
    Drug makers also rose, with Chugai Pharmaceutical  4519.T 
gaining 2.31% and Takeda Pharmaceutical  4502.T  rising 1.1%. 
    Optimism around the roll-out of COVID-19 vaccines in Japan
buoyed airline stocks, with ANA Holdings  9202.T  and Japan
Airlines  9201.T  jumping 1.94% and 2.21%, respectively. 
    Chip-related shares fell after the Nasdaq  .IXIC  closed
lower overnight. Japan's Nidec  6594.T  fell 1.81%, Renesas
Electronics  6723.T  slipped 1.46% and Advantest  6857.T  fell
1.99%. 
    The underperformers among the top 30 core Topix were Hitachi
 6501.T , which fell 2.39%, followed by Mitsubishi UFJ Financial
Group  8306.T  losing 1.87%.
    There were 55 advancers on the Nikkei index against 167
decliners. 
 
    

 (Reporting by Junko Fujita; Editing by Devika Syamnath)
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