Japan shares retreat from multi-decade highs on vaccine supply-chain woes

  • Reuters
  • Stock Market News
Japan shares retreat from multi-decade highs on vaccine supply-chain woes

TOKYO, Dec 4 (Reuters) - Japanese shares on Friday retreated from a near 29-1/2-year high, as risk sentiment soured following a report that U.S. drugmaker Pfizer Inc (NYSE: PFE ) slashed the target for the rollout of its coronavirus vaccine.

The benchmark Nikkei share average .N225 lost 0.44% to 26,690.47 by the midday break, but was poised for its fifth consecutive weekly gain. In the previous session, the index settled near its highest since April 1991.

The broader Topix .TOPX fell 0.2% to 1,771.63.

The market tracked overnight weak performance on Wall Street's S&P 500 index , which fell from all-time highs, after Pfizer PFE.N flagged challenges in supply chain for the raw materials used in its vaccine. /N stronger yen, last trading at 103.86 per dollar, also provided headwind for export-oriented stocks JPY=EBS . Fanuc 6954.T fell 1.1%, while Sony Corp 6758.T edged 0.23% lower.

But market losses were limited by hopes that governments at home and abroad will deliver more economic stimulus, analysts said.

Some auto-related shares advanced after local media reported that Japan may ban sales of new gasoline-engine cars by the mid-2030s, and that the government would hold talks next week to establish a carbon offset market for the industry. moves come after Prime Minister Yoshihide Suga's pledge for Japan to slash carbon emissions to zero on a net basis by 2050.

Denso Corp 6902.T jumped more than 6.3%, while Nissan Motor 7201.T and Toyota Motor Corp 7203.T added 0.74% and 0.54%, respectively.

Battery-related shares followed suit, with Furukawa Battery 6937.T spiking 9% and FDK Corp 6955.T edging up 0.61%.

Toshiba Corp 6502.T jumped 3.47% on a report that Kioxia, previously known as Toshiba Memory, received permission from the U.S. authorities to export some products to Huawei Technologies. is expected to hold a news conference later in the day to provide an update on the country's pandemic response, his first since coronavirus case numbers surged in November.

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