Japanese Shares Fall Weighed by Chip Shares

TOKYO, Feb 4 (Reuters) – Japanese shares snapped a three-day winning streak on Thursday, dragged down by declines in chip-related companies, although a surge in shares of Sony limited some losses.

Sony’s shares rose 9.54% to hit its highest level since September 2000, and were the biggest gainer on the Nikkei share average, after the electronics and media giant raised its full-year profit outlook.

Nikkei declined 1.06% at 28,341.95, while the broader Topix dipped 0.32% to 1,865.12.

Chip-related shares led losses, with Advantest falling 3.94%, Sumco losing 3.8% and Fanuc declining 3.26%. Tokyo Electron fell 2.6%.

“Chip-related shares rose too much before the earnings season started but now all the good news are out,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

“Virus-beaten down transport shares are gaining but whether those shares could maintain the momentum is questionable as the pandemic is far from over.”

Transport stocks continued to rise on Thursday, with Japan Airlines and West Japan Railway gaining 1.48% and 0.71%, respectively.

Brokerages gained the most among the 33 sector sub-indexes on the Tokyo exchange as Nomura Holdings jumped 4.09 after reporting strong earnings. Daiwa Securities Group rose 2.03%.

The sea transport sector jumped 2.96% after Kawasaki Kisen raised its outlook. The shipping company rose 4.39% and its peer Nippon Yusen gained 4.3%.

Kao fell 8.19 after the cosmetics and toiletries maker reported a 14.9% decline in its annual net profit, making it the biggest loser on the Nikkei. Z Holdings followed by losing 6.37% and Kikkoman was down 6.09%.

Reporting by Junko Fujita; Editing by Amy Caren Daniel

Source: Reuters

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