Nikkei closes near 29-1/2-year high; vaccine caution weighs

J. FRONT RETAILING

12/11/2020 07:00

TOKYO, Nov 12 (Reuters) - Japan's Nikkei share average
closed near a 29-1/2-year high on Thursday as technology shares
tracked their U.S. peers higher, although gains were checked by
profit-booking following a rally fuelled by optimism over
COVID-19 vaccine-related developments.
    The benchmark Nikkei  .N225  settled 0.68% higher at
25,520.88, after hitting its highest level since June 5, 1991
earlier in the session.
    Stocks briefly fell into negative territory in afternoon
trade, as some investors turned cautious about the rally and
booked profits.
    "Everybody cheered the vaccine headlines, but they have
begun to realise that there are many challenges, such as
logistics and vaccine performance," said Daisuke Uchiyama, a
senior strategist at Okasan Securities.
    An increase in coronavirus cases in Europe and the United
States is making it difficult for investors to have an
optimistic view about the economic recovery, Uchiyama said.  
    Overnight, the tech-heavy Nasdaq  .IXIC  ended 2% higher,
after "stay-at-home" stocks bounced back from two straight
sessions of sharp losses as investors moved away from
economically sensitive sectors back to tech.  .N   MKT/GLOB 
    Japan's tech-related shares such as heavyweight SoftBank
Group  9984.T  benefited from gains in their U.S. counterparts.
SoftBank climbed around 1.5%.
    Among the top 30 core Topix names, Nintendo  7974.T  jumped
4.3% to snap four consecutive sessions of losses.
    The broader Topix  .TOPX  slipped 0.16% to 1,726.23 and
snapped seven consecutive sessions of gains. Only eight of the
33 sector sub-indexes on the Tokyo exchange traded higher. 
    Sectors such as real estate  .IRLTY.T , airlines  .IAIRL.T 
and financials  .IINSU.T  .IBNKS.T , which surged on vaccine
hopes, fell between 1.23% and 3.36%.
    Elsewhere, Isetan Mitsukoshi Holdings  3099.T  fell about 5%
after it reported a half-year net loss of 36.79 billion yen 
($349.48 million).  urn:newsml:reuters.com:*:nXB156XCEI 
    Some of its department store peers followed suit.
Takashimaya  8233.T  dropped 4.84%, while J.Front Retailing
 3086.T  lost 4.68%.
    ($1 = 105.2700 yen)

 (Reporting by Eimi Yamamitsu and Tokyo markets team; Editing by
Rashmi Aich and Subhranshu Sahu)
 ((eimi.yamamitsu@thomsonreuters.com;))