Japan shares rise on bargain hunting for undervalued stocks, cost woes weigh

TOPPAN Holdings

11/11/2021 02:48

By Junko Fujita
    TOKYO, Nov 11 (Reuters) - Japanese shares gained on
Thursday, as investors were selective and scooped up stocks that
were undervalued in comparison to their latest outlooks, while
concerns over impact of rising costs on outlook capped gains. 
    The Nikkei share average  .N225  rose 0.6% to 29,280.42 by
0153 GMT, after losing as much as 0.2% to track overnight
weakness on Wall Street earlier in the session. The broader
Topix  .TOPX  gained 0.37% to 2,015.34. 
    Wall Street closed sharply lower overnight as surging
consumer prices curbed investor risk appetite, and stoked
worries of a protracted wave of red hot inflation.  .N 
    "Investors bought shares whose prices proven undervalued
relative to their latest outlook. We have been seeing a clear
contrast in stock prices between those with strong earnings and
those without," said Ikuo Mitsui, fund manager at Aizawa
Securities.
    "But we can't see any sign for the end of the global trend
of rising costs in materials and transportation, which have been
weighing on the investor sentiment." 
    Toppan Printing  7911.T  surged 9.01% after the printing
company raised its annual outlook. Showa Denko  4004.T , too,
rose 7.29%, as the industrial materials maker returned to
profit.  urn:newsml:reuters.com:*:nXB021EC9V  urn:newsml:reuters.com:*:nXB1HN8I6K
    Pacific Metals  5541.T  surged 16.01%, after an activist
fund disclosed its holdings in the manufacture of ferronickel. 
    On the other hand, cosmetics maker Shiseido  4911.T  and
brewery Asahi Group Holdings  2502.T  fell 5.82% and 3.25%,
respectively, after cutting their annual profit outlook.        
    Pan Pacific International Holdings  7532.T  tanked 9.21%
after the operator of discount stores' outlook missed market
expectations.  urn:newsml:reuters.com:*:nXB0TSJROQ
    There were 145 advancers on the Nikkei index against 71
decliners.  
    

 (Editing by Rashmi Aich)
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