Japan's Nikkei flat on profit-booking after recent rally

MS&AD Insurance group

22/05/2023 04:47

TOKYO, May 22 (Reuters) - Japan's Nikkei share average
was trading flat on Monday, as investors sold stocks to lock in
profits after the benchmark index scaled a 33-year high in the
previous session, although a strong performance by insurers
supported the market.
    The Nikkei  .N225  opened lower, but reversed course to end
the morning session flat at 30,833.94. The broader Topix  .TOPX 
edged 0.15% higher to 2,164.95.
    The benchmark Nikkei rose on Friday to its highest level
since August 1990, buoyed by ongoing improvement of shareholder
returns, robust outlook and the yen's weakness.
    "The market opened lower as investors took a pause after the
Nikkei hitting a 33-year high. But the momentum has not changed
and the rally would continue for some time," said Shigetoshi
Kamada, general manager at the research department at Tachibana
Securities.
    "The latest rally was led by foreign investors but as
domestic firms continue to boost shareholder returns, retail
investors will also join the buying spree. It seems trend of
share buybacks will never end." 
    Non-life insurers led the gains after Tokio Marine Holdings
 8766.T  and its peers posted robust outlook after market close
on Friday. Tokio Marine, which also announced a buyback of up to
1.5% of its own shares, surged 5% on Monday. 
    Shares of MS&AD Insurance  8725.T  advanced 1.85% and Sompo
Holdings  8630.T  edged 0.27% higher.  
    The insurance sector  .IINSU.T  jumped 2.16% to become the
top gainer among the Tokyo Stock Exchange's 33 industry
sub-indexes. 
    The Airlines  .IAIRL.T  and railways  IRAIL.T  sub-indexes
rose 1.25% and 1.24%, respectively. 
    Chipmaker Renesas Electronics  6723.T  lost 2.9% to become
the biggest loser in the Nikkei. Drug maker Daiichi Sankyo
 4568.T  fell 2.49%.  
    Of the Nikkei components, 145 issues rose, while 72 declined
and eight were flat. 

    

 (Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips)
 ((junko.fujita@thomsonreuters.com;))