Japanese shares fall on profit booking, checking U.S. rates

Kao

06/04/2021 03:58

TOKYO, April 6 (Reuters) - Japanese shares gave up early
gains and slipped on Tuesday, as investors booked profits from
recent rallies and treaded with caution as they await clues over
the direction of U.S. interest rates.
    Nikkei share average  .N225  lost 0.81% to 29,844.81 by 0208
GMT, after hitting the 30,000 mark for the first time in more
than two weeks on Monday. The broader Topix  .TOPX  fell 0.74%
to 1,968.80
    "Investors who bought stocks when the Nikkei hit the 30,000
mark earlier this year were disappointed when the index fell
well below that level. Those who do not want to repeat that risk
were selling the shares today," said Takatoshi Itoshima,
strategist at Pictet Asset Management.
    "The market fundamental is strong. But ultimately the
stimulus packages in the U.S. and the direction of the long term
interest rates could determine the move of the Japanese market."
    U.S. Treasury yields edged lower overnight, as investors
paused recent selling of government bonds, though the uptrend in
rates remained intact following Friday's blockbuster jobs
report.  urn:newsml:reuters.com:*:nL1N2LY11D
    Index heavyweights Fast Retailing  9983.T , an operator of
Uniqlo brand clothing stores, fell 1.44% and Tokyo Electron
 8035.T  lost 1.62%. 
    Mizuho Financial Group  8411.T  dropped 2.43% after the bank
said it would revise its IT contingency plans by the end of
June, as it suffered four systems glitches during two weeks from
February to March.  urn:newsml:reuters.com:*:nL1N2LY07P
    Mitsubishi UFJ Financial Group  8306.T  lost 2.28% and
Sumitomo Mitsui Financial Group  8316.T  fell 1.85%.
    Tracking a 4% decline in oil prices, oil and gas explorers
Inpex  1605.T  lost 2.45% and Japan Petroleum Exploration
 1662.T  slipped 1.77%.  
    The stocks that gained the most among the top 30 core Topix
names were Hitachi  6501.T , up 1.12 %, followed by Kao
 4452.T . 
    The underperformers among the Topix 30 were Takeda
Pharmaceutical   4502.T , down 2.51%, followed by Mizuho
Financial Group. 
    There were 61 advancers on the Nikkei index against 160
decliners. 

 (Reporting by Junko Fujita; Editing by Shailesh Kuber)
 ((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters
Messaging:junko.fujita.reuters.com@reuters.net;))