Japan's Nikkei slips on caution ahead of US inflation data

Chugai Pharmaceutical

10/04/2024 04:15

TOKYO, April 10 (Reuters) - Japan's Nikkei share average
fell on Wednesday, as investors locked in profits after recent
gains, while caution ahead of a key U.S. inflation print also
weighed on risk sentiment.     
    The Nikkei  .N225  was down 0.27% at 39,666.24 by the midday
break. 
    The Nikkei was poised to snap a winning streak after the
index rose nearly 1% each in the previous two sessions. The
benchmark index had slumped nearly 2% in its biggest daily
decline in almost a month on Friday.
    "The Nikkei rose in the past two days, which prompted
investors to sell stocks," said Naoki Fujiwara, senior fund
manager at Shinkin Asset Management.
    "Also the market turned cautions ahead of the U.S. consumer
price inflation for March, which will indicate the timing of the
U.S. rate cuts," Fujiwara said. 
    Investors will closely watch U.S. data later in the day as
they seek direction on the Federal Reserve's next move in
interest rates. The data is expected to show a rise in headline
inflation to 3.4% year-on-year, from 3.2% in February.
    Shares of Uniqlo brand owner Fast Retailing  9983.T  fell
1.43% to become the biggest drag in the Nikkei while drugmaker
Chugai Pharmaceutical  4519.T  lost 2.24%. 
    Chip-testing making equipment Advantest  6857.T  slipped
0.51%.
    Bucking the trend, chip-making equipment maker Tokyo
Electron  8035.T  rose 0.85% and silicon wafer maker Shin-Etsu
Chemical  4063.T  gained 1.22%.
    Nuclear power plant operator Tokyo Electric Power Holdings
 9501.T  rose 4.71% to become the top performer in the benchmark
index while city gas supplier Tokyo Gas  9531.T  advanced 4.67%.
    The broader Topix  .TOPX  slipped 0.17% to 2,749.92, with
Toyota Motor  7203.T  falling 0.66% to become the biggest drag. 
    Trading house Mitsui & Co  8031.T  lost 2.1%
    Seven & i Holdings  3382.T  reversed course to fall 1.06%
after Kyodo news agency reported that the retail conglomerate
plans to list its supermarket unit Ito-Yokado. 
    


 (Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips)
 ((junko.fujita@thomsonreuters.com;))