Japanese shares dip on Delta variant anxiety; earnings in focus

Sumitomo Electric Industries

04/08/2021 03:21

TOKYO, Aug 4 (Reuters) - Japanese shares dipped on Wednesday
as concerns about the rapid spread of the Delta coronavirus
variant kept investors on edge, while upbeat earnings boosted
Nippon Steel and other cyclical shares.
    Some of the country's top companies such as Toyota Motor
 7203.T , Sony  6758.T , Honda Motor  7267.T , and a few trading
houses are due to report their results later in the day.
    The Nikkei share average  .N225  dipped 0.16% to 27,569.52,
while the broader Topix  .TOPX  fell 0.20% to 1,927.28.
    Concerns about surging COVID-19 cases are mounting as the
head of the Japan Medical Association called for a nationwide
state of emergency.  urn:newsml:reuters.com:*:nL1N2PA02Q
    "It's not that there is huge selling. But no one is buying.
Even when a company announces strong earnings, that certainly
pleases its existing investors but there's no additional
buyers," said Takenori Yamamoto, portfolio manager at
Norinchukin Zenkyoren Asset.
    He expects more buying late in August when the government
will likely focus on an economic stimulus ahead of an election
that must be held by November.
    Still, upbeat earnings did give a fillip to some shares.
    Nippon Steel  5401.T  jumped 8.1% after the country's top
steelmaker bumped up its net profit estimate for the current
year by more than 50%, well above analysts' forecasts.
 urn:newsml:reuters.com:*:nXB0M2K1GA
    That helped to boost other steelmakers, with JFE  5411.T  up
3.3% and Kobe Steel  5406.T  gaining 1.5%.
    Daikin  6367.T  rose 4.6% after the manufacturer of
air-conditioners posted stronger-than-expected profit growth.
    Z Holdings  4689.T  gained 6.3% after the internet service
firm reported brisk growth in quarterly profit.  urn:newsml:reuters.com:*:nXB0L0GQPU
    On the other hand, Nichirei Corp  2871.T  dropped 11.6%
after the frozen food product firm, which had benefited from
demand boost from the pandemic, reported surprisingly weak
quarterly profits in the quarter.  urn:newsml:reuters.com:*:nXB1OKFDM4
    Game companies continued to feel the pinch after China's
state media article described online games as "spiritual opium".
 urn:newsml:reuters.com:*:nL1N2PA03U
    Koei Tecmo  3635.T  lost 3.5% while Nexon  3659.T  fell
2.3%.

 (Reporting by Hideyuki Sano; editing by Uttaresh.V)
 ((hideyuki.sano@thomsonreuters.com; +81 3 4520 1195;))