Japanese shares fall on disappointing tech outlook, pandemic concerns

  • Reuters
  • Stock Market News
Japanese shares fall on disappointing tech outlook, pandemic concerns
Credit: © Reuters.

TOKYO, April 30 (Reuters) - Japanese shares ended lower on Friday, weighed down by technology firms' disappointing outlook, while a spike in domestic COVID-19 infections hit investor sentiment.

The Nikkei 225 Index .N225 fell 0.83% to close at 28,812.63, while the broader Topix .TOPX slipped 0.57% to 1,898.24.

Japanese tech stocks led the declines, as investors sifted through latest earnings reports and sold shares of companies that failed to live up to their lofty expectations for a robust rebound this year, analysts said.

Investors are also growing more worried about COVID-19, as new infections in Tokyo and Osaka are rising even after the declaration of a state of emergency for the two cities at the start of this week, analysts said.

Tokyo reported 1,027 daily infections on Thursday, the highest since Jan. 18. earnings coming in so far have not justified the massive rally in stocks from last year, so the upside is limited," said Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank.

"Britain and the United States have shown that vaccinations lead to a resumption of economic activity, but unfortunately Japan is lagging behind."

Z Holdings 4689.T fell 7.11% after the search engine operator and internet advertiser's profit forecasts for the current fiscal year disappointed investors who were expecting more benefits from its merger last month with Line, Japan's most popular messaging app.

Sony Group 6758.T lost 7.714% after the maker of the PlayStation gaming console said it expects profits to fall as stay-at-home demand wanes. Manufacturing Co 6981.T also fell 3.55% after the electronic parts maker's forecasts also fell short of analysts' expectations.

One exception to the declines in the tech sector was CyberAgent Inc 4751.T . Shares of the mobile video-game operator surged 15.28% after the company raised its earnings forecasts.

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