Japan's Nikkei little changed as investors take a breather

KFC Holdings Japan

21/05/2024 04:16

TOKYO, May 21 (Reuters) - Japan's Nikkei share average
gave up most of its early gains on Tuesday to trade little
changed, as investors slowed activity following recent sharp
gains.  
    The Nikkei  .N225  was up 0.17% to 39,135.91 by the midday
break, after rising as much as 0.7% earlier in the session. 
    The index rose 0.78% in the previous session, hitting 39,000
level for the first time in a month.
    The broader Topix  .TOPX  was up 0.16% to 2,772.57.
    "Investors sold stocks because they turned cautious that the
index has risen too much after its previous session's gain,"
Fumio Matsumoto, chief equity strategist at Okasan Securities
said.
    "The market does not believe the Nikkei to reclaim 40,000
level anytime soon."     
    Chip-related shares rose to lift the Nikkei, with Advantest
 6857.T  and Tokyo Electron  8035.T  rising 2.17% and 0.85%,
respectively
    Insurers were strong, with MS&AD Insurance Group  8725.T 
surging 15% to become the top percentage gainer on the Nikkei. 
    The insurer said on Monday its group net profit is forecast
to rise 65% and that it would buy back up to 8.2% of its shares.
    Peer Tokio Marine Holdings  8766.T  rose 4.6% after
announcing it would sell down cross-share holdings to zero by
the end of fiscal 2029/30. 
    The insurance sector  .IINSU.T  rose 4% to become the best
performer among the Tokyo Stock Exchange's (TSE) 33 industry
sub-indexes.
    Sompo Holdings  8630.T  fell 4.53% to become the worst
percentage loser as the insurer flagged a 45% decline in its
annual net profit. 
    KFC Holdings  9873.T  was untraded with a glut of buy orders
after the operator of Kentucky Fried Chicken outlets said U.S.
buyout fund Carlyle Group  CG.O  offered to buy the shares of
the company at 6,500 yen per stock.  
    Of more than 1,600 stocks trading on the TSE's prime
section, 48% of shares rose and 47% fell with 3% being flat. 
    

 (Reporting by Junko Fujita; Editing by Mrigank Dhaniwala)
 ((junko.fujita@thomsonreuters.com;))