Japanese shares end nearly flat as year-end selloff by funds erases tech gains

  • Reuters
  • Stock Market News
Japanese shares end nearly flat as year-end selloff by funds erases tech gains
Credit: © Reuters.

TOKYO, March 10 (Reuters) - Japanese shares were little changed on Wednesday, as gains in technology stocks tracking an overnight Wall Street rally were snapped by a fiscal year-end selloff by domestic funds.

The Nikkei index .N225 inched up 0.03% to close at 29,036.56, while the broader Topix .TOPX gained 0.11% to 1,919.74.

Nikkei rallied to a 30-year high last month on expectations of a swift economic rebound and robust corporate earnings. Fund houses are booking profits before the fiscal year ends this month.

"This is all about the move toward the fiscal year end," said Shoichi Arisawa, general manager for investment research department at IwaiCosmo Securities.

"Pension and other funds are trying to cut their stock holdings that increased during the rally. The sell-off will continue throughout the month and this will weigh on indexes."

Technology shares rose, tracking an about 4% gain in tech-heavy Nasdaq in its biggest single-day rise since Nov. 4, as U.S. bond yields retreated. .N

Fanuc 6954.T , which gained 3.35%, was the biggest contributor to the Nikkei, followed by phone operator KDDI 9433.T , which rose 3.44%. Chip testing equipment maker Advantest 6857.T rose 2.34% and Sony 6758.T rose 1.76%.

Terumo changed its course to fall 0.33% after rising on the news that the medical equipment maker has developed a new syringe that can get seven doses out of each vial of COVID-19 vaccine made by Pfizer Inc (NYSE: PFE ) PFE.N . and mining sectors fell the most among the 33 sector sub-indexes on Topix, with JFE Holdings 5411.T , Kobe Steel 5406.T and Nipon Steel 5401.T dropping 3.4%, 3.32% and 2.54%, respectively.

Index heavyweights Fast Retailing 9983.T , a Uniqlo brand clothing shop operator, lost 2.41% and online medical platform M3 2413.T fell 6.19%.

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