Nikkei snaps 4-day losing streak, but Delta worries persist

Chugai Pharmaceutical

18/08/2021 07:38

TOKYO, Aug 18 (Reuters) - Japanese shares bounced back on
Wednesday, led by gains in Fujifilm and other defensive stocks,
with the Nikkei share average snapping its four-day losing
streak, but concerns about the Delta variant kept investors on
guard.
    The Nikkei  .N225  rose 0.59% to 27,585.91, reversing its
earlier losses when it hit its lowest level since July 30. The
broader Topix  .TOPX  rose 0.44% to 1,923.97.
    The index of long-battered Mothers start-up shares  .MTHR 
rebounded after hitting one-year lows earlier in the session.
    The gains were led mainly by defensive shares while many
cyclical shares slipped on continued worries the spreading Delta
variant could disrupt economic recovery, both at home and
abroad.
    Fujifilm  4901.T  rose 3.3% 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
2.1% and Chugai Pharmaceutical  4519.T  gaining 1.1%.
    But many cyclical shares fell on rising growth concerns as
many countries struggled to contain the Delta variant of the
coronavirus.
    Steelmakers  .ISTEL.T  lost 0.9% while Shippers  .ISHIP.T ,
which had risen about 50% in less than three weeks on the back
of a red-hot freight market, lost 1.4%.
    "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
    Elsewhere, Pan Pacific International  7532.T  lost 6.0%
after the retailer's quarterly earnings fell short of market
expectations.

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