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Japan's Nikkei pulls back from 3-decade high, but tech stocks march ahead

Published 2021/01/15, 04:54
Updated 2021/01/15, 05:00
© Reuters.
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TOKYO, Jan 15 (Reuters) - Japan's benchmark Nikkei stock average inched lower on Friday after rising for five straight sessions to hit a three-decade high, although losses were capped by tech-related shares after Taiwanese chipmaker TSMC posted its best-ever quarterly profit.

The Nikkei .N225 eased 0.25% to 28,626.08 by 0154 GMT, while the broader Topix .TOPX fell 0.50% to 1,863.94. However, the Nikkei was up 1.7% for the week, on track for a third straight weekly gain.

"The market started slowing down at the end of yesterday's session as investors felt the overheat in the market," said Norihiro Fujito, chief investment strategist, Mitsubishi UFJ Morgan Stanley (NYSE:MS) Securities.

"But this is a very limited decline. The market is supported by solid demand for chip shares on the back of robust earnings from TSMC."

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW posted its best-ever quarterly profit on Thursday and raised revenue and capital spending estimates, pushing the Philadelphia semiconductor index .SOX to a record high. gave an additional boost to Japanese chip shares which were already in solid demand, Fujito said.

Tokyo Electron 8035.T rose 4.5%, Advantest 6857.T gained 4.25%, Sumco 3436.T added 3.16%, and Renesas Electronics 6723.T climbed 1.46%.

Canon 7751.T was the top gainer in the Nikkei 225 with a jump of 7.47%, after the company raised its profit forecast for the year just ended to well above analysts' estimates. stocks also tracked the U.S. market, which ended lower on Thursday ahead of President-elect Joe Biden's announcement of a stimulus package designed to jump-start the economy. .N

Fast Retailing 9983.T fell 3.17%, even after it said its first-quarter operating profits were higher than the pre-pandemic levels. also slipped. Subaru 7270. shed 2.34% after it became the latest car maker to cut production due to a global shortage of semiconductors. Toyota Motor 7203.T fell 1.72%, while Honda Motor 7267.T declined 2.62%.

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