Japanese shares bounce back as defensive stocks gain

Chugai Pharmaceutical

18/08/2021 04:20

TOKYO, Aug 18 (Reuters) - Japanese shares bounced back on
Wednesday, led by gains in Fujifilm and other defensive stocks,
while concerns about Delta variant kept many investors on guard.
    Nikkei average  .N225  rose 0.57% to 27,579.84, erasing
earlier losses to its lowest level since July 30 after four
straight days of losses.
    The broader Topix  .TOPX  also rose 0.54% to 1,925.98.
    The gains were led mainly by defensive shares while many
cyclical shares slipped on continued worries the spreading Delta
variant could disrupt the economic recovery, both at home and
abroad.
    Fujifilm  4901.T  rose to a record high, extending its rally
since its brisk earnings announced on Friday.
    Some defensive shares such as pharmaceutical companies were
also among the top gainers, with Astellas Pharma  4503.T  up
2.7% and Chugai Pharmaceutical  4519.T  gaining 2.0%.
    But many cyclical shares fell on rising growth concerns as
many countries struggled to contain Delta variant of the
coronavirus.
    Securities brokerage firms  .ISECU.T  fell 0.2% while
steelmakers  .ISTEL.T  lost 0.4%. Shippers  .ISHIP.T , which had
risen about 50% in less than three weeks on the back of a
red-hot freight market, lost 3.0%.
    "There are rising worries the world economy could slow down
next year due to variant," said Masayuki Kubota, chief
strategist at Rakuten Securities.
    U.S. retail sales fell more than expected in July while
Japan on Tuesday extended its state of emergency in Tokyo and
other regions and to counter a spike in COVID-19 infections that
is threatening the medical system.  urn:newsml:reuters.com:*:nL1N2PN1S0  urn:newsml:reuters.com:*:nL1N2PO06D
    Pan Pacific International  7532.T  lost 6.7% after the
retailer's quarterly earnings fell short of market expectations.
    Shippers dropped after their colossal gains over the past
few weeks.

 (Reporting by Hideyuki Sano; Editing by Krishna Chandra Eluri)
 ((hideyuki.sano@thomsonreuters.com; +81 3 4520 1195;))