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Nikkei edges up after U.S. jobs data eases worries over Fed taper talk

06/06/2021 | 10:36pm EDT

TOKYO, June 7 (Reuters) - Japan's Nikkei share average inched higher on Monday after a U.S. jobs report eased concerns over early tapering from the Federal Reserve, but gains were limited by heavy profit-taking.

The Nikkei share average rose as high as 1.0% to reach a nearly four-week high in early trading, but gave up most gains to last stand at 28,990.66, up 0.17%.

The broader Topix dipped into negative territory, down 0.07% at 1,957.81, after scaling a two-month intraday high earlier in the session.

The U.S. economy added 559,000 nonfarm payrolls in May, data on Friday showed, a tad below economists' forecast of 650,000, reducing expectations of an early tapering in the Fed's asset purchase.

"The jobs report would not prompt the Fed to hasten discussion on tapering," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

"But we are seeing quite a lot of profit-taking after the Nikkei rose above 29,000. You cannot avoid the impression that Japanese shares are struggling to keep up with U.S. shares."

The reduced bets on the Fed's tapering boosted tech stocks, with electronic parts makers Ibiden rising 4.2% and TDK Corp adding 2.8%.

Shippers benefitted from global bullish sentiment, rising 2.5% to a 10-year peak, with Nippon Yusen hitting a 12-year high.

Rival Kawasaki Kisen jumped 4.2%, while Mitsui OSK Lines added 2.4%.

However, profit-taking sank steelmakers, which had risen sharply this year on signs of a global recovery.

The steelmaker subindex dropped 4.3%, with Nippon Steel losing 5.3%, JFE Holdings shedding 6.4% and Kobe Steel falling 4.8%.

Hospitality shares, which had gained on Japan's accelerated vaccine roll-outs, also lost traction, with department store operator Takashimaya dropping 2.4% and Isetan Mitsukoshi edging down 1.7%.

Bank shares lost 1.0% as U.S. bond yields eased to near their lowest levels on the payrolls data.

Real estate investment trusts (REITs) maintained a bull run, with TSE REIT index up 0.5% at a 15-month high. (Reporting by Hideyuki Sano; Editing by Ramakrishnan M.)

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
ANA HOLDINGS INC. 3.30% 2659 End-of-day quote.16.78%
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) -0.15% 0.73553 Delayed Quote.-4.03%
BRITISH POUND / US DOLLAR (GBP/USD) -0.09% 1.3869 Delayed Quote.1.11%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.02% 0.7942 Delayed Quote.1.54%
EURO / US DOLLAR (EUR/USD) -0.11% 1.1806 Delayed Quote.-3.35%
IBIDEN CO.,LTD. 2.42% 5930 End-of-day quote.23.16%
INDIAN RUPEE / US DOLLAR (INR/USD) 0.09% 0.013435 Delayed Quote.-1.74%
ISETAN MITSUKOSHI HOLDINGS LTD. 2.85% 795 End-of-day quote.30.33%
JFE HOLDINGS, INC. 2.33% 1320 End-of-day quote.33.60%
JFE SYSTEMS, INC. 3.23% 1790 End-of-day quote.7.19%
KAWASAKI KISEN KAISHA, LTD. -1.40% 3530 End-of-day quote.67.14%
KOBE STEEL, LTD. 1.28% 713 End-of-day quote.29.40%
MITSUBISHI UFJ FINANCIAL GROUP, INC. 1.53% 588.9 End-of-day quote.29.12%
MITSUI O.S.K. LINES, LTD. -0.60% 4970 End-of-day quote.57.78%
MORGAN STANLEY -0.06% 96.48 Delayed Quote.40.79%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) -0.09% 0.69579 Delayed Quote.-2.49%
NIKKEI 225 -1.39% 27581.66 Real-time Quote.1.42%
NIPPON STEEL CORPORATION 1.85% 1845.5 End-of-day quote.38.97%
TAKASHIMAYA COMPANY, LIMITED 2.57% 1199 End-of-day quote.35.48%
TDK CORPORATION 2.20% 13470 End-of-day quote.-13.32%
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