Japan stocks edge up, gains limited after rally; techs supported

  • Reuters
  • Stock Market News
Japan stocks edge up, gains limited after rally; techs supported
Credit: © Reuters.

* Nikkei gains 0.1%, brushes 2-month high

* Market takes a breather after previous day's surge

* Techs shares supported after Wall St peers rally

By Shinichi Saoshiro

TOKYO, July 2 (Reuters) - Japanese stocks eked out modest gains on Tuesday as investors were more circumspect after the previous day's relief rally over U.S.-China trade talks, while tech shares benefited from a rise in their Wall Street counterparts.

Japan's Nikkei share average .N225 ended the day up 0.11% at 21,754.27 after brushing 21,784.22, its highest since May 7.

The index had gained 2.1% on Monday as risk sentiment improved after the United States and China agreed to restart trade talks during a G20 summit over the weekend.

"Profit-taking after the previous day's big gains is capping the market," said Soichiro Monji, senior strategist at Sumitomo Mitsui DS Asset Management.

"The trade issue is an ongoing process which cannot be digested at once. Meanwhile the market will turn to fundamentals, notably the U.S. economy, and corporate results for near-term guidance."

Tech-related companies advanced after their U.S. peers .SPLRCT jumped overnight.

Tokyo Electron 8035.T gained 2.9%, Mitsubishi Electric Corp 6503.T added 0.85% and Screen Holdings 7735.T climbed 4.5%.

Fujifilm Holdings Corp 4901.T rose 1.45% following news that it will team up with German drugmaker Bayer BAYGn.DE to develop cancer treatment using induced pluripotent stem cells (iPS). nL8N242486

Workman 7564.T was up 5.8% after the maker and distributor of workwear reported that its existing store sales increased 35.8% in June on a year-on-year basis. company System Integrator Corp 3826.T rallied 10.7% after it revised up its operating profit forecast for the six months through August to 200 million yen ($1.85 million) from 140 million yen. Tokyo's 33 subindexes, 28 were in positive territory.

Advancing issues outnumbered decliners 1,429 to 628.

The broader Topix .TOPX added 0.31% to 1,589.84. ($1 = 108.4000 yen) (Editing by Shri Navaratnam)

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