Nikkei slips from 1-month high, value shares not in favour

By Hideyuki Sano
TOKYO, April 15 (Reuters) - Japan's benchmark Nikkei index
ended lower on Wednesday, after touching a month-high in the
previous session, due to a selloff in value stocks that took a
hit from worries over a looming recession.
Investors still favoured defensive shares such as
healthcare, while many cyclical shares with relatively weak
growth prospects, such as banks, shippers and steelmakers,
underperformed.
The Nikkei share average .N225 fell 0.45% to 19,550.09 on
profit-taking after a 3.13% gain on Tuesday.
With the Nikkei now paring back about 40% of its downturn in
the first quarter on the coronavirus, its 50% retracement level
of around 20,250 is seen as a next possible target though some
investors are ready to lock in profits now.
The broader Topix .TOPX ended almost flat at 1,434.07, up
0.04 points, though decliners outnumbered gainers by a ratio of
74 to 26.
"Some selected shares such as life science,
semiconductor-related and cloud services are doing well. But the
economy is likely to be in a bad shape for a while, so
value-oriented shares will remain week," said Nobuhiko
Kuramochi, chief strategist at Mizuho Securities.
The gap between growth-oriented and value stocks widened
sharply as investors became more selective in picking shares
that were likely to grow in the current environment.
The Topix Growth index .TOPXG rose 0.79% while the Topix
Value fell .TOPXV 0.79%.
Among value-oriented shares, banks .IBNKS.T dropped 2.4%.
Mitsubishi UFJ Financial Group 8306.T fell 2.6% while Sumitomo
Mitsui Financial Group 8316.T lost 2.1%. Mizuho Financial
Group 8411.T fell 2.8%.
Stock brokerage shares .ISECU.T also suffered 2.8% losses,
with Nomura Holdings 8604.T down 2.3%.
Steelmakers .ISTEL.T fell 2.6%, with industry leader
Nippon Steel 5401.T shedding 3.7%. Shippers .ISHIP.T lost
3.7%.
Among firms that announced earnings revision, Gunosy
6047.T dropped 9.9% after the internet media and advertisement
start-up slashed its revenue forecast for the year to May by
almost 18%. UUUM 3990.T fell 8.1% after the firm that specialises in
the management of YouTubers and influencers revised down its
annual estimates, cutting net profit guidance for the year to
May by almost a half. On the other hand, battered airline shares .IAIRL.T
bounced back 2.0%.
Drugmakers .IPHAM.T gained 0.9%, with Chugai
Pharmaceutical rising 2.7% to record high.
Drugstore chain operator Welcia Holdings 3141.T also
touched a record high with 4.4% gains.
Turnover rose to the highest level in a week, with 2.528
trillion yen .VM1.T worth of shares changing hands on the main
board.