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Japanese shares end higher on cyclicals boost, tech weakness caps gains

Published 06/05/2021, 07:42
Updated 06/05/2021, 07:48
© Reuters.

© Reuters.

TOKYO, May 6 (Reuters) - Japanese shares gained on Thursday
to mark their biggest percentage gain in two weeks, as investors
scooped up cyclical shares following Wall Street gains, although
the gains were capped by technology shares that tracked the
Nasdaq lower.
The Nikkei share average .N225 advanced 1.8% to close at
29,331.37, while the broader Topix .TOPX gained 1.54% to
1,927.40. The market reopened on Thursday after three days of
public holidays.
"The market rebounded after sell-offs before the Golden Week
holiday when investors were too cautious about the market
outlook," said Shoichi Arisawa, general manager of the
investment research department at IwaiCosmo Securities.
"The strong U.S. market also supported sentiment today. But
I am not sure how long this will last because the (coronavirus)
situation in Japan is very different from that in the U.S."
The Dow Jones Industrial Average .DJI ended at a record
high on Wednesday, driven by economically sensitive sectors,
while the Nasdaq Composite .IXIC ended lower as Treasury
Secretary Janet Yellen suggested an interest rate hike. .N
While the U.S. economy has shown signs of recovery from the
COVID-19 lows, Japan's economy still remains under strain, with
the nation considering extending a state of emergency in Tokyo
and other major urban areas. Tokyo Governor Yuriko Koike said on Thursday an extended
state of emergency was needed to contain infections that are
straining the capital's medical system. Material makers led gains, with steel makers JFE Holdings
5411.T and Nippon Steel 5401.T surging 8.00% and 7.50%,
respectively, making them the top gainers on the Nikkei index.
Paper maker Oji Holdings 3861.T jumped 6.97%.
Technology shares weighed on the indexes, with Advantest
6857.T falling 1.54%. Tokyo Electron inched up 0.89% even as
its annual operating profit forecast of 442 billion yen ($4.04
billion) beat analysts' forecast. Nissan Motor 7201.T rose 2.92%, after the carmaker sold
its roughly 1.5% stake in German carmaker Daimler DAIGn.DE .

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