🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Nikkei edges higher, stops short of erasing pandemic loss

Published 2020/08/14, 09:24
Updated 2020/08/14, 09:30
© Reuters.

* Nikkei up slightly, investors hesitate to advance rally

* Nikkei yet to close Feb chart gap opened after COVID-19 outbreak

* Hopes of economic recovery and vaccines underpin sentiment

* Real estate shares hit by rising bond yields

By Hideyuki Sano

TOKYO, Aug 14 (Reuters) - Japan's Nikkei share average eked out gains on Friday, but stopped short of a final step towards a complete recovery from its decline triggered by the coronavirus crisis.

The Nikkei .N225 ended 0.17% higher at 23,289.36, briefly hitting a six-month high for two straight sessions, but did not rise enough to close a major chart gap between 23,378 and 22,950 made in February, when signs of global spread of the COVID-19 caught investors off guard.

Given risk factors such as uncertainties over U.S. stimulus and intensifying China-U.S. tensions, investors regarded profit-taking more prudent than chasing the rally further.

The broader Topix .TOPX dipped 0.05% to 1,623.28, having risen 8.5% just in the first two weeks of August, supported by hopes of gradual recovery in the global economy and rapid development of COVID-19 vaccines.

"The market has been strong even for a bull like me. It has been driven by short-covering by foreign investors," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute.

The biggest gainer among the top 100 firms .TOPX100 was Fujifilm Holdings 4901.T , which rose 2.8% after the company said it expects data from a clinical trial of its Avigan drug on COVID-19 patients to be ready in about a month. 4324.T gained 2.2% after the advertising firm managed to eke out small gains, despite analyst forecasts of a quarterly net loss. Ra Daichi 3182.T , one of the stay-at-home stock winners, advanced 11.8% to an all-time high after local media reported, which was later confirmed, that the food delivery service operator will tie up with restaurant chain Ootoya Holdings 2705.T . the other hand, rise in bond yields this week also prompted investors to take profit from interest rate-sensitive shares, including Softbank 9984.T , and real estate firms .IRLTY.T .

Softbank fell 1.5%, while realtor Mitsui Fudosan 8801.T and Mitsubishi Estate 8802.T dropped 3.1% and 2.3%, respectively. (Editing by Sherry Jacob-Phillips and Rashmi Aich)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.