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
"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.)