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Japan's Nikkei retreats from 30-year high as corporate earnings loom

Published 22/01/2021, 03:32
Updated 22/01/2021, 03:36
© Reuters.

TOKYO, Jan 22 (Reuters) - Japanese shares retreated from a
30-year peak on Friday, as investors refrained from placing big
bets ahead of the corporate earnings season while some locked in
profit after the recent rally in global equities.
Nikkei share average .N225 edged down 0.33% to 28,663.27
as of 0140GMT, while the broader Topix .TOPX eased 0.23% to
1,856.35. The index closed at a 30-year high on Thursday on
investor optimism that new U.S. administration's massive
stimulus package will bolster growth.
"Today's decline is mainly due to profit-taking after U.S.
stocks touched new highs," said Hideyuki Ishiguro, senior
strategist, Daiwa Securities.
"Investors are also holding off from buying ahead of
earnings reports next week."
Wall Street peaked overnight, with both the S&P 500 .SPX
and Nasdaq Composite .IXIC closing at record highs, pushed
upward by continued optimism about economic stimulus to
counteract the COVID-19 pandemic promised by newly inaugurated
U.S. President Joe Biden.
Ad agency Dentsu Group 4324.T fell 2.97%, following a jump
of more than 5% on Thursday, after a report by the Times that
the Japanese government has privately concluded the Tokyo
Olympics to be cancelled because of the coronavirus pandemic.
Hakuhodo DY Holdings 2433.T fell 2.38%.
Nippon Steel 5401.T fell 3.07% after announcing plans to
boost its stake in Tokyo Rope 5981.T in a public tender offer.

Tokyo Rope is untraded with glut of bids and looks set to
rise 28%, its limit for the day.
Shiseido 4911.T jumped 3.99%, becoming the largest gainer
in the index, after the cosmetic firm said it was in talks to
sell its shampoo and skincare business to private equity CVC
Capital Partners.
Kao 4452.T rose 1.04%.
Chip-related shares rose, with Nikon 7731.T rising 3.27%
and Sharp 6753.T jumping 3.9%.

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(Editing by Sherry Jacob-Phillips)

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