Japanese shares end almost flat just below 3-month high as rally loses steam

TOKYO, June 10 (Reuters) - Japanese shares closed nearly
flat on Wednesday, ending just below a three-month high hit
earlier this week, as investors paused to take stock of the
market that rose on hopes of a swift recovery from a
coronavirus-led downturn.
The Nikkei share average .N225 ended up 0.15% at
23,124.95, while the broader Topix .TOPX lost 0.23% to
1,624.71.
"The market has been recovering but many people are
concerned about the outlook. Given the current stretched
valuations, we could see a correction in the near term," said
Masato Futoi, deputy general manager of institutional sales at
Tokai Tokyo Securities.
With the Topix trading at 16 times expected earnings over
the next 12 months, the highest level in seven years, some
Japanese players were taking profits ahead of the U.S. Federal
Reserve's policy meeting later in the day.
Takara Bio 4974.T rose 17.5%, by daily limit, to a
seven-year high after the Japanese biotechnology firm said it
has developed a method to speed up PCR tests for COVID-19.
The parent company Takara Holdings 2531.T was the best
performer on the Nikkei, with gains of 9.9%.
Growth-oriented shares, which have high valuations because
of strong expectations, are making a comeback, with the Topix
Growth index .TOPXG rising 0.2%. Topix value .TOPXV shed
0.7%.
Among growth shares, Shin-Etsu Chemical 4063.T rose 2.2%,
Astellas Pharma 4503.T gained 1.9% and Recruit Holdings
6098.T added 1.7%, while Sony 6758.T rose 1.3%.
Shares in the Tokyo Stock Exchange's Mothers start-up market
also outperformed, with its index .MTHR rising 1.5% after
hitting a 1-1/2-year high. On the other hand, many of value shares - those with
relatively cheap valuations - underperformed following stellar
gains in the past couple of weeks.
Constructors .ICONS.T fell 1.7% with Shimizu Corp 1803.T
dropping 4.4%, Taisei Corp 1801.T losing 3.8% and Obayashi
Corp 1802.T shedding 4.9%.
Steelmakers .ISTEL.T dropped 2.0%, while insurance
companies .IINSU.T lost 1.5%.