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Nikkei edges up as financials rise, momentum slows after extended surge

Published 2018/09/20, 04:22
Updated 2018/09/20, 04:30
© Reuters.  Nikkei edges up as financials rise, momentum slows after extended surge
DJI
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JP225
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TOPX
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8604
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8630
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8750
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8766
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8306
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8316
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8411
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8601
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7974
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7545
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* Nikkei up 0.23 pct, Topix climbs 0.27 pct

* Nikkei's rise slows, profit taking kicks in after days of gains

* Banks, insurers, brokerages extend gains amid rise in US yields

By Shinichi Saoshiro

TOKYO, Sept 20 (Reuters) - Japan's Nikkei share average inched up on Thursday as financial shares extended their rise, although advances were limited as market momentum slowed after several days of big gains.

The Nikkei .N225 was up 0.23 percent at 23,728.33 and headed for its fifth gaining day.

The index has risen nearly 3 percent this week, climbing to an eight-month high on Wednesday in line with a bounce in global equities.

The market was lifted by Wall Street, with the Dow .DJI hitting its highest closing level since January overnight.

Banking, securities and insurance shares continued to lead gains in Japanese stocks with the recent spike in U.S. Treasury yields boosting their Wall Street financial sector peers.

"The fundamentals point to the Nikkei advancing towards the 24,000 threshold and marking the year's high, with U.S. shares advancing strongly, the dollar weakening against yen and corporate performance proving to be strong," said Takashi Hiroki, chief strategist at Monex Securities.

"But for now, the market looks stretched after rallying for days, giving short-term players a chance to lock in profits."

Banks were strong gainers, with Sumitomo Mitsui Financial Group 8316.T rising 1.6 percent, Mitsubishi UFJ Financial Group 8306.T adding 2.65 percent and Mizuho Financial Group 8411.T rising 1.3 percent.

Insurers also rose, with Tokio Marine Holdings 8766.T advancing 1.1 percent, Sompo Holdings 8630.T gaining 1 percent and Dai-ichi Life Holdings 8750.T rising 1.2 percent.

Daiwa Securities Group 8601.T was up 1.1 percent and Nomura Holdings 8604.T added 1.9 percent.

Other gainers included Nintendo Co 7974.T , which rose 2.65 percent after launching its paid Nintendo Switch Online gaming platform on Wednesday.

Nishimatsuya Chain Co 7545.T sank 4.3 percent after the retailer of child and maternity clothing and goods cut its net profit forecast for the six months through August to 2.06 billion yen ($18.37 million) from 2.82 billion yen. broader Topix .TOPX added 0.27 percent to 1,790.49. ($1 = 112.1500 yen)

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