Japanese shares slip from 30-yr high as investors book profits

YASKAWA Electric

17/02/2021 03:21

TOKYO, Feb 17 (Reuters) - Japanese shares slipped on
Wednesday as investors booked profits after a recent rally drove
them to a 30-year high, even as pandemic-beaten shares gained on
expectations for an economic recovery from a coronavirus-driven
slump. 
    The Nikkei share average fell 0.87% to 30,202.71  .N225 
from Tuesday's high of 30,714.52, a peak since August 1990. 
    The broader Topix  .TOPX  lost 0.41% to 1,957.21, a day
after scaling its highest since June 1991. 
    "Investors are selling stocks for profit booking today. The
market is taking a pause from a rising momentum," said Masahiro
Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset
Management. 
    "Shares that were beaten down amid the pandemic are being
bought as rising interest rates in the U.S. and Japan indicates
an economic recovery. Rollouts of COVID-19 vaccines in Japan is
another positive factor."
    Chip and electronics shares are leading losses in Nikkei,
with TDK  6762.T  down 3.7%, Yaskawa Electric  6506.T  losing
3.8% and Tokyo Electron  8035.T  shedding 3.1%. 
    The declines followed a drop overnight in U.S. technology
stocks  .SPLRCT . 
    Bridgestone  5108.T  tumbled 4.9% after the company posted
its first annual net loss in 69 years due to impairment and
restructuring costs, following the pandemic.  urn:newsml:reuters.com:*:nXB16XUL7Y
    Shares whose valuations had shot up after a recent rally
also took a hit, with M3  2413.T  falling 3.6% and Keyence
 6861.T  dropping 2.4%.
    On the other hand, travel- and leisure-related shares did
well after Japan launched its COVID-19 inoculation drive on
Wednesday.  urn:newsml:reuters.com:*:nT9N2K001R
    ANA Holdings  9202.T  gained 3.5% while Central Japan
Railway  9022.T  rose 1.9% and West Japan Railway  9021.T  added
1.3%.
    Oriental Land  4661.T , the operator of Tokyo Disney Resort,
rose 1.8%.  
    Rise in U.S. bond yields boosted financials, with Dai-ichi
Life Holdings  8750.T  up 1.3% and Mizuho Financial  8411.T 
gaining 0.8%.
    The yield on 10-year U.S. Treasuries  US10YT=RR  hit its
highest since February 2020.  US/ 
 

 (Reporting by Junko Fujita;
Editing by Vinay Dwivedi)
 ((hideyuki.sano@thomsonreuters.com; +81 3 4520 1195;))