Nikkei holds steady on caution ahead of earnings

Taiyo Yuden

26/10/2020 02:54

TOKYO, Oct 26 (Reuters) - Japanese shares steadied on
Monday, as investors were on guard ahead of a slew of earnings
reports, while a surge in global coronavirus cases also weighed
on sentiment.
    The benchmark Nikkei share average  .N225  was nearly flat
at 23,514.41 by the midday break, while the broader Topix
 .TOPX  fell 0.17% to 1,622.53.
    Nearly two-thirds of the 33 sector sub-indexes on the Tokyo
exchange traded lower, with iron and steel  .ISTEL.T , services
 .ISVCS.T  and securities  .ISECU.T  leading the declines on the
main bourse.
    Corporate earnings due later in the day include Canon Inc
 7751.T , Nidec Corp  6594.T  and Nitto Denko Corp  6988.T .
    Mounting worries about coronavirus cases also prevented
investors from taking huge positions.
    The United States has seen its highest ever number of new
coronavirus cases in the past two days, while in Europe, France
registered record increase in infections over the weekend and
Spain announced a state of emergency.  urn:newsml:reuters.com:*:nL1N2HG0I7 urn:newsml:reuters.com:*:nL1N2HG0O3
 urn:newsml:reuters.com:*:nL1N2HG0CO
    E-mini futures for the S&P 500  EScv1  dipped more than 0.5%
amid U.S. coronavirus stimulus and presidential election
uncertainty, creating an extra headwind to Japanese shares.
    Electronic parts maker Murata Manufacturing  6981.T  climbed
2.77% after the company made upward revisions to its net profit
forecast for the six months ended Sept. 30.  urn:newsml:reuters.com:*:nXB1VOB7YF
    Other electrical component stocks followed suit, with Taiyo
Yuden  6976.T  and TDK Corp  6762.T  up around 1.9% each.
    Among decliners, ANA Holdings  9202.T  lost nearly 1.3%
after media reports the airline operator plans to cut about
3,500 jobs in three years as it braced for its biggest-ever
annual loss.  urn:newsml:reuters.com:*:nL1N2HG01F
    Elsewhere, the Mothers Index  .MTHR  of start-up firm shares
lost 1.23% and was poised to mark four consecutive sessions of
losses.

 (Reporting by Eimi Yamamitsu; Editing by Krishna Chandra Eluri)
 ((eimi.yamamitsu@thomsonreuters.com;))