Japanese shares retreat from 3-week high; drugmakers limit losses
31/05/2021 04:03
TOKYO, May 31 (Reuters) - Japanese shares fell on Monday, as
investors locked in profit after recent gains in the markets,
though local drugmakers advanced as the world's third-largest
economy saw steady progress with its COVID-19 vaccination drive.
The Nikkei share average .N225 was down 0.73% at 28,36.51,
as of 0229 GMT, while the broader Topix .TOPX lost 0.63% to
1,935,21.
The Nikkei jumped 2.1% on Friday to close the 29,000 level
for the first time since May 10, while Wall Street finished with
marginal gains as investors brushed off a stronger-than-expected
inflation reading. .N
"Shares rose sharply on Friday, but gains in the U.S.
markets were limited, which is the reason for the sell-off
today," said Yutaka Miura, senior technical analyst at Mizuho
Securities.
"There aren't any reasons to buy Japanese stocks at the
moment except that the vaccine rollouts are proceeding well.
That is helping cap the declines in the session."
Index heavyweights Fast Retailing 9983.T and SoftBank
Group 9984.T dragged the Nikkei lower, after slipping 1.12%
and 0.73%, respectively.
Renesas Electronics Corp 6723.T sank 5.94% after the
chipmaker announced a sale of about $2 billion shares to help it
fund its planned $6 billion purchase of Dialog Semiconductor
DLGS.DE . urn:newsml:reuters.com:*:nL2N2NF0EU
Drugmakers advanced, with the two leading percentage gainers
in the Nikkei - Astellas Pharma 4503.T jumping 3.69% and
Chugai Pharmaceutical 4519.T climbing 1.75%. Daiichi Sankyo
4568.T rose 1.09%.
Japan started its inoculation drive in mid-February, later
than most major economies, and has been racing to vaccinate most
of its elderly population before the start of the Tokyo Olympics
on July 23.
The largest percentage losers in the index were NTN Corp
6472.T , down 4.33 %, followed by Credit Saison 8253.T losing
3.79% and Fukuoka Financial Group 8354.T down 3.57%.
(Reportingi by Junko Fujita, Editing by Sherry Jacob-Phillips)
((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters
Messaging:junko.fujita.reuters.com@reuters.net;))