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Nikkei dips but stimulus, vaccine hopes lift Tokyo shares

Published 02/12/2020, 04:25
Updated 02/12/2020, 04:30
© Reuters.

TOKYO, Dec 2 (Reuters) - Japan's Nikkei average on Wednesday
dipped on profit-taking, though the Tokyo stock market was
supported by investor hopes for additional stimulus and economic
boosts from expected coronavirus vaccine rollouts.
Nikkei share average .N225 dipped 0.1% to 26,756.37 after
touching a 29-1/2-year high earlier in the session.
The broader Topix .TOPX rose 0.25% to 1,772.87 with about
55% of shares on the main board making gains and another 5%
holding flat.
"With the Nikkei so close to the 27,000, investors are
getting a bit cautious. We've priced in a lot of good news. But
I don't think the market will fall that much either," said Naoya
Oshikubo, senior economist at Sumitomo Mitsui Trust Asset
Management.
The gains in Topix came as U.S. politicians put forth a
flurry of proposals on coronavirus relief packages after a
month-long partisan standoff. Hopes that vaccines can reduce the need for strict social
restrictions next year also underpinned the market, especially
value shares.
Honda Motor 7267.T rose 4.0% while Takeda Pharmaceutical
4502.T added 2.8% and retailer Seven&i Holdings 3382.T
climbed 2.8%.
Topix value .TOPXV rose 0.89%, outperforming 0.25% gains
in growth shares .TOPXG .
The Nikkei was pressured by a 3.4% drop in Recruit Holdings
6098.T , which said its shareholders will sell 416.8 billion
yen ($4 billion) worth of shares in the company to overseas
investors. Some other large-cap growth shares were bruised by
profit-taking, with Sony 6758.T shedding 1.9% and Hoya
7741.T losing 1.9%.
Ito en 2593.T lost 3.8% after the beverage firm cut its
annual net profit outlook by more than a half.
Nishimatsuya Chain 7545.T dropped 3.2% after the retailer
of kids clothes' earnings upgrade prompted profit-taking from
the shares' 60% gains so far this year.
Workman 7564.T fell 5.5% after the clothing retailer's
November sales grew 8.6% but came in short of market
expectations.

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