Nikkei ticks up but runs out of gas ahead of long weekend

Nikkei ticks up but runs out of gas ahead of long weekend

Reuters  | Sep 18, 2020 11:10

Nikkei ticks up but runs out of gas ahead of long weekend

By Hideyuki Sano
TOKYO, Sept 18 (Reuters) - Japanese shares inched up on
Friday but hovered below their post-pandemic high touched
earlier this week, as investors grew cautious about expensive
valuations and a murky earnings outlook ahead of a long weekend.
At midday, Japan's Nikkei share average .N225 was up 0.03%
at 23,326.00 and the broader Topix .TOPX 0.22% to 1,642.01.
Both the indexes stopped well short of testing a near
seven-month peak scaled on Monday on hopes new Japanese Prime
Minister Yoshihide Suga will ensure political stability and
policy continuity.
Many of the day's top performers were recent laggards, such
as railway operators and carmakers, as investors bought them
back to close their positions ahead of a four-day weekend.
The market will be closed on Monday and Tuesday for a
national holiday.
East Japan Railway 9020.T gained 2.3% and West Japan
Railway 9021.T was up 1.9%. But, both were still down about 6%
this week after they gave a guidance of record annual losses
earlier in the week.
"The companies hit hard by the coronavirus are likely to
post underwhelming earnings as the railway companies have shown
this week," said Norihiro Fujito, chief investment strategist at
Mitsubishi UFJ Morgan Stanley Securities.
"The Nikkei is already trading at 23 times the earnings and
the Topix 24 times. Investors will hesitate to buy at current
levels."
Some battered cyclicals also gained, with Nissan Motor
7201.T rising 1.5% and Isuzu Motors 7202.T gaining 3.8%.
Buy-back in those shares, however, will have run its course
by this week, some analysts said, as margin sellers need to
close their positions within six months and Friday falls to six
months from the market's trough hit on March 17, the peak of
virus-led massive selling.
Telecom shares stayed under pressure as Suga has been
calling for lower mobile tariffs. NTT Docomo 9437.T , KDDI
9433.T and SoftBank 9434.T , fell 1.8%, 2.6% and 2.6%
respectively.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (Australia) English (South Africa) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.

';