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

  • Reuters
  • Stock Market News
Japan's Nikkei retreats from 30-year high as corporate earnings loom
Credit: © 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. 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. 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. 4452.T rose 1.04%.

Chip-related shares rose, with Nikon 7731.T rising 3.27% and Sharp 6753.T jumping 3.9%.

(Editing by Sherry Jacob-Phillips)

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