Japanese shares edge up on tech gains, COVID-19 measures cap rise

TOKYO, May 7 (Reuters) - Japanese shares ended higher on
Friday as investors scooped up cheap technology stocks, while
concerns around the slow economic recovery due to the extension
of COVID-19 emergency measures capped gains.
The Nikkei share average .N225 ticked up 0.09% to close at
29,357.82, while the broader Topix .TOPX rose 0.29% to
1,933.05. Both indexes inched down earlier in the session after
rising the most in two weeks on Thursday.
"The market rose too much yesterday so investors sold shares
to book profits, but as soon as the indexes fell, they quickly
started looking for bargains, particularly those which reported
positive earnings," said Norihiro Fujito, chief investment
strategist, Mitsubishi UFJ Morgan Stanley Securities.
"But the gain was limited as investors were concerned that
it could take some more time until Japan's economy will be
normalized due to the extension of the state of emergency."
Japan is set to extend a state of emergency in Tokyo and
three other areas by about three weeks until the end of May to
curb a surge in coronavirus cases. Technology shares advanced, with heavyweight Tokyo Electron
8035.T rising 2.38% as investors took a second look at the
positive outlook of the chip equipment maker.
Semiconductor test equipment supplier Advantest 6857.T
rose 0.88%, while robot maker Fanuc 6954.T gained 1.15%.
On the other hand, Nintendo 7974.T lost 1.95% after the
game maker forecast annual sales of its Switch console to fall
11.5%. Nippon Steel 5401.T jumped 5.71%, making it the biggest
gainer on the Nikkei, as the steel manufacturer's 240 billion
yen ($2.2 billion) annual net profit forecast beat analyst
estimates.
Trading house Mitsubishi Corp 8058.T fell 3.97% and was
the biggest loser on the index, posting a 68% decline in its
annual net profit.

($1 = 109.0700 yen)