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Japan shares pause after Thursday's rally; SoftBank Group shines

Published 07/02/2020, 04:09
Updated 07/02/2020, 04:19
Japan shares pause after Thursday's rally; SoftBank Group shines
JP225
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TOPX
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7733
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9984
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4974
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IAIRL.T
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IPAPR.T
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ITXTL.T
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TOKYO, Feb 7 (Reuters) - Japanese shares held steady on

Friday, after having logged their biggest daily gain in more

than a year in the previous session, with SoftBank Group soaring

on news that U.S. activist investor Elliott Management has built

a stake in the company.

The benchmark Nikkei average .N225 eased 0.1% to 23,855.37

by the midday break. It jumped 2.4% on Thursday, its most in 13

months, as China pledged tariff cuts on some U.S. imports,

providing some relief to global financial markets jolted by a

rapidly spreading coronavirus outbreak.

For the week, the index was still up 2.8% and poised for its

best week in eight.

Index-heavy SoftBank Group 9984.T surged 6.3% after media

reports that Elliott Management has amassed a nearly $3 billion

stake in the Japanese conglomerate and is pushing for changes in

its governance and transparency. The broader Topix .TOPX slipped 0.2% to 1,733.32,

following a 2.1% leap on Thursday.

All but four of the 33 sector subindexes on the Tokyo Stock

Exchange were in negative territory, with paper and pulp

.IPAPR.T , textiles .ITXTL.T and air transport .IAIRL.T

leading the losses.

With the earnings season in full swing in Japan, Olympus

Corp 7733.T shot up 11.9% to a record high after the medical

equipment maker posted record operating profit for the

April-December period and raised its full-year profit guidance.

Although financial markets have found some comfort from

China's stimulus measures and move to cut import tariffs on some

U.S. goods, investors remain concerned about the coronavirus

outbreak and its broader impact on individual companies and the

economy.

On Friday, China's Hubei province, where Wuhan is located,

reported 69 new deaths, taking the total in the mainland to over

600. It also reported nearly 2,500 new cases, taking the total

to over 30,000, according to state television. Takara Bio Inc 4974.T jumped 10.9% after the Nikkei

newspaper reported the company is set to produce 50 times more

of a coronavirus testing reagent at its plant in Dalian in

response to an urgent request from the Chinese city.

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