Nikkei up as large cap stocks rebound; growth woes cap gains
* Nishimatsuya dives after co cuts annual profit forecast
* Weaker oil prices lift utility cos
By Ayai Tomisawa
TOKYO, Dec 17 (Reuters) - Japan's Nikkei rose on Monday, recouping some of the sharp losses seen at the end of last week as investors picked up battered shares, but the upside was curbed by rising concerns over global growth.
The Nikkei share average .N225 rose 0.6 percent to 21,506.88, after it slumped 2 percent on Friday on the back of grim Chinese data which also knocked Wall Street.
"The market seems to be digesting concerns about global growth and some of these worries have been priced into the market for now," said Toru Ibayashi, executive director of Wealth Management at UBS Securities Japan
However, analysts said investors are still cautious about further signs of a slowdown in global growth - a factor reflected in the underperformance of the Topix .TOPX , which only rose 0.1 percent to 1,594.20.
Declining issues outnumbered advancing ones 1,420 to 648.
"Large cap stocks were the main losers on Friday, so investors bought back as selling is thought to be overdone," said Hikaru Sato, a senior technical analyst at Daiwa Securities. "But mid-to-small cap stocks are still struggling as investors are still reluctant to go long for the overall market."
Machinery and technology shares gained after selling off on worries about China's weak retail growth and industrial output data.
Advantest Corp 6857.T jumped 2.1 percent, while Tokyo Electron 8035.T and TDK Corp 6762.T both gained 1.8 percent.
Weaker oil prices lifted utility shares on hopes of lower costs. Tokyo Electric Power Co 9501.T gained 3.0 percent and Chubu Electric Power Co 9502.T added 1.9 percent.
On the other hand, mining stocks lost ground. Inpex Corp 1605.T fell 1.7 percent.
The weak China data fanned worries about lower fuel demand in the world's biggest oil importer, sending oil prices down about 2 percent on Friday before they edged up in Asian trade on Monday. the stronger market, discount children's wear operator Nishimatsuya Chain 7545.T nosedived 8.6 percent after the company cut its full-year net profit forecast by 42 percent to 3.33 billion yen ($29.3 million) for the year ending February due to weak sales of baby clothes.
Office supply company Askul Corp 2678.T tumbled 6.5 percent after its pre-tax profit dropped 54.5 percent on year to 958 million yen for the first half ended November hit by rising delivery costs amid driver shortage.
($1 = 113.4900 yen) (Editing by Jacqueline Wong & Shri Navaratnam)
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or