Japanese shares regain lost ground as growth stocks back in focus

  • Reuters
  • Stock Market News
Japanese shares regain lost ground as growth stocks back in focus
Credit: © Reuters.

TOKYO, June 10 (Reuters) - Japanese shares clawed back lost ground to end the morning trade almost flat on Wednesday as investors rushed to buy growth and start-up stocks on continued hopes of a swift recovery from an economic contraction sparked by the coronavirus crisis.

The Nikkei share average .N225 edged up 0.1% at 23,115.22, while the broader Topix .TOPX lost 0.07% to 1,627.35. Earlier in the session, the benchmark index dropped as much as 0.83%.

Both indexes hovered near three-month peaks touched earlier this week.

The rebound came in tandem with gains in U.S. stock futures as hopes of economic recovery after a sharp downturn due to shutdowns continued to underpin the mood.

Takara Bio 4974.T rose 17.5%, by daily limit, to a seven-year high after the Japanese biotechnology firm said it has developed a method to speed up PCR tests for COVID-19.

The parent company Takara Holdings 2531.T was the best performer in the Nikkei, with gains of 7.8%.

Growth-oriented shares, which have high valuations because of strong growth expectations, are making a comeback, with the Topix Growth index .TOPXG rising 0.3%. Topix value .TOPXV shed 0.5%.

Among growth shares, Shin-Etsu Chemical 4063.T rose 2.0%, Astellas Pharma 4503.T gained 2.0% and Recruit Holdings 6098.T added 1.3%, while Sony 6758.T rose 0.8%.

Shares in the Tokyo Stock Exchange's Mothers start-up market also outperformed, with its index .MTHR rising 1.6% after hitting a 1-1/2-year high. the other hand, many of value shares - those with relatively cheap valuations - underperformed following stellar gains in the past couple of weeks.

Constructors .ICONS.T fell 1.1% with Shimizu Corp 1803.T dropping 3.1% and Taisei Corp 1801.T losing 2.6%.

Steelmakers .ISTEL.T dropped 1.6%, while insurance companies .IINSU.T lost 1.3%, not helped by fall in U.S. bond yields.

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