Japan's Nikkei softens on profit-taking as investors weigh earnings
06/02/2024 06:50
(Updates levels at 0630 GMT)
By Brigid Riley
TOKYO, Feb 6 (Reuters) -
Japan's Nikkei share average fell on Tuesday as investors
booked profits on high stock prices and continued to assess
domestic earnings reports.
The Nikkei index .N225 closed down 0.53% at 36,160.66,
with 70 of the index's 225 constituents gaining against 154
decliners.
The broader Topix .TOPX fell 0.68% to 2,539.25.
Japanese stock indexes tracked their Wall Street peers,
which closed lower overnight as the market reacted to mixed U.S.
earnings reports and pushback from the Federal Reserve against
speculation of imminent interest rate cuts.
"It doesn't feel like there is much movement based on an
overall theme" in Japan's stock market on Tuesday so much as
focus on individual stocks, said Hiroshi Namioka, chief
strategist at T&D Asset Management.
With Japan's earnings season well underway, investors
weighed revenue announcements from companies, and financial
results, combined with high prices, generated some
profit-taking.
Automaker Toyota Motor 7203.T was among a host of
companies to announce third-quarter earnings on Tuesday; the
index heavyweight gave the market a brief boost after announcing
it raised its full-year operating profit forecast by nearly 9%.
Toyota Motor shares gained 4.78%, rebounding sharply after
declining in the morning session.
Other shares that pulled ahead on positive financial results
included Mitsubishi Heavy Industries Ltd 7011.T , which gained
6.43% to come in as the best performer of the day, followed by
Nippon Electric Glass Co Ltd 5214.T gaining 5.88% and Nissui
Corp 1332.T rising 5.57%.
Semiconductor-related shares were also up, with Advantest
6857.T gaining 2.95%, after Nvidia NVDA.O hit afresh record
high overnight following Goldman Sachs raising its price target.
The largest percentage losses in the index came from
electrical equipment manufacturer Omron Corp 6645.T , down
15.27%, followed by Pacific Metals Co Ltd 5541.T declining
10.07% and delivery service Yamato Holdings Co Ltd 9064.T
losing 7.28%.
(Reporting by Brigid Riley; Editing by Mrigank Dhaniwala and
Janane Venkatraman)
((brigid.riley@thomsonreuters.com;))