Nikkei ekes out gains, within whisker of erasing pandemic loss

  • Reuters
  • Stock Market News
Nikkei ekes out gains, within whisker of erasing pandemic loss
Credit: © Reuters.

By Hideyuki Sano

TOKYO, Aug 14 (Reuters) - Japan's Nikkei share average eked out gains on Friday, but stopped short of a final step towards a complete recovery from its decline triggered by the coronavirus crisis.

The Nikkei .N225 rose 0.11% to 23,275.27, briefly hitting a six-month high for two straight sessions but stopped short of closing a major chart gap between 23,378 and 22,950 made in February, when signs of global spread of the COVID-19 shocked investors.

Given risk factors such as uncertainties over U.S. stimulus and intensifying China-U.S. tensions, investors regarded profit-taking more prudent than chasing the rally further.

The broader Topix .TOPX rose 0.16% to 1,626.76, having risen 8.7% just in the first two weeks of August, supported by hopes of gradual recovery in the global economy and rapid development of COVID-19 vaccines.

"The market has been strong even for a bull like me. It has been driven by short-covering by foreign investors," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute.

The biggest gainer among the top 100 firms .TOPX100 was Fujifilm Holdings 4901.T , which rose 2.8% after the company said it expects data from a clinical trial of its Avigan drug on COVID-19 patients to be ready in about a month. 4324.T gained 3.4% after the advertising firm managed to eke out small gains, despite analyst forecasts of a quarterly net loss. Ra Daichi 3182.T , one of the stay-at-home stock winners, advanced 12.3% to a record high after local media reported that the food delivery service operator will tie up with restaurant chain Ootoya Holdings 2705.T . the other hand, rise in bond yields this week also prompted investors to take profit from interest rate-sensitive shares, including Softbank 9984.T , and real estate firms .IRLTY.T .

Softbank fell 2.3%, while realtor Mitsui Fudosan 8801.T and Mitsubishi Estate 8802.T dropped 2.3% and 1.7%, respectively. (Editing by Sherry Jacob-Phillips)

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