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Japan shares edge up but momentum limited after rally; techs supported

Published 07/02/2019, 09:50 AM
Updated 07/02/2019, 10:00 AM
Japan shares edge up but momentum limited after rally; techs supported

* Nikkei up roughly 0.1%, briefly touches 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 shares edged up on
Tuesday although the market's momentum was limited following the
previous day's relief rally over U.S.-China trade talks, while
tech shares managed to draw support from gains by their Wall
Street counterparts.
Japan's Nikkei share average .N225 was up 0.09% at
21,749.08 as of 0136 GMT after brushing 21,764.62, 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 2.8%, Mitsubishi Electric
Corp 6503.T added 1% and Screen Holdings 7735.T climbed 3%.
Workman 7564.T rose 3.3% 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
more than 6% 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. Of Tokyo's 33 subindexes, 20 were in positive territory led
by sea transport .ISHIP.T . The decliners were led by mining
.IMING.T .
The broader Topix .TOPX added 0.12% to 1,586.89.
($1 = 108.4000 yen)

(Editing by Sam Holmes)

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