Japan's Nikkei ends lower as investors book profits

Kyocera

29/02/2024 07:02

(Update prices)
       TOKYO, Feb 29 (Reuters) - Japan's Nikkei share average
ended lower on Thursday, as investors sold stocks to lock in
profits from the index's record high, but it erased most of its
early losses on demand for buying on dips. 
    The Nikkei  .N225  fell for a second day, edging down 0.11%
to close at 39,166.19. The index fell as much as 0.8% earlier in
the session to trade below the 39.000 level for the first time
since Feb. 22. 
    "Investors bought back stocks after the Nikkei fell below
39,000," said Shuji Hosoi, senior strategist at Daiwa
Securities.
    "One outstanding stock was Toyota, which rose despite the
yen's strength. It signalled that investors are still hunting
for Japan's mega caps." 
    The yen  JPY=EBS  strengthened against the dollar on
Thursday after Bank of Japan board member Hajime Takata said the
central bank must consider overhauling its ultra-loose monetary
policy.
    Toyota gave up its early losses to end 1.43% higher,
becoming the biggest force to turn the broader Topix  .TOPX 
change course to end 0.03% higher at 2,675.73.
    Chip-making equipment maker Tokyo Electron  8035.T  gave up
early losses to end 1.04% higher.
    However, sentiment was hurt by the latest data from the
finance ministry, which showed foreign investors turned net
sellers of Japanese stocks in the week when the index scaled an
all-time high, Ryutaro Sawada, senior market analyst at Tokai
Tokyo Research Institute, said.
    Foreign investors sold 200 billion yen ($1.33 billion) of
Japanese stocks in the week ended Feb. 24, pausing a seven-week
buying streak. 
    Among other stocks, Aozora Bank  8304.T  surged 9.46% after
public disclosure showed an activist fund City Index Eleventh
owns 5.42% in the Tokyo-based bank. 
    Seven & i Holdings  3382.T  rose 6.19% after media reported
that the convenience store chain operator was considering
selling a supermarket unit to investment funds. A company
spokesman said there was no truth to it. 
        
($1 = 150.0000 yen)

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