(Refiled to make day in the first line Wednesday, not Tuesday)
* Pharma, real estate and construction sectors outperform
* Miraial soars after raising profit, dividend outlooks
By Ayai Tomisawa
TOKYO, Feb 27 (Reuters) - Japan's Nikkei rose on Wednesday morning as investors bought into defensive stocks such as pharmaceutical and real estate firms, and took some money off the table from machinery shares which had rallied on progress in U.S.-China trade talks.
"Shares that had been pressured on worries about U.S.-China trade disputes were bought back early this week, so there seems to be profit-taking going on," said Takashi Ito, an equity market strategist at Nomura Securities.
"Instead, they are picking up companies which rely on domestic demand."
Daiichi Sankyo 4568.T jumped 3.4 percent, Takeda Pharmaceutical 4502.T rallied 2.7 percent, Mitsui Fudosan 8801.T gained 2 percent, Mitsubishi Estate 8802.T added 1.2 percent and Obayashi Corp 1802.T rose 1.8 percent.
Ito said investors are awaiting more developments on the U.S.-China trade negotiations, while also adjusting their positions in line with the recent cautious policy stance of the U.S. Federal Reserve.
On Tuesday, Fed Chairman Jerome Powell told a U.S. Senate Banking Committee that the central bank would remain "patient" in deciding on further interest rate hikes. dollar tends to be pressured in this environment so the market is increasingly paying attention to the risk that the yen will strengthen. This situation makes investors want to buy domestic-demand sensitive stocks," Ito said.
Wednesday's losers included companies with high exposure to the Chinese market which had rallied after President Donald Trump said on Sunday he would delay an increase in U.S. tariffs on Chinese goods. Keyence Corp 6861.T shed 1.7 percent, Yaskawa Electric 6506.T declined 2.1 percent and Komatsu Ltd 6301.T fell 1.9 percent. products maker Miraial 4238.T jumped 8.6 percent after it raised its net profit outlook to 1.25 billion yen from 950 million yen for the year ended January. It also raised its annual dividend payout forecast to 30 yen per share from 20 yen per share. (Editing by Shri Navaratnam)
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