TOKYO, Jan 20 (Reuters) - Japanese shares trimmed early gains on Wednesday on profit-booking as U.S. Treasury Secretary nominee Janet Yellen's call for big spending was perceived by investors as no surprise.
Yellen's push for a sizable fiscal relief package in response to the COVID-19 pandemic sent the Wall Street's main indexes higher on Tuesday.
Yellen urged lawmakers to "act big" on the next package, adding that the benefits outweigh the costs of a higher debt burden. since Yellen's remarks have been reported by media in advance, there was no fresh reaction in the Japanese market, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
"Yellen's speech was fully priced in today's market. Investors are selling shares for profit taking," Ichikawa said.
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