TOKYO, May 26 (Reuters) - Japanese shares eked out small
gains on Wednesday, capping the fifth straight session of rises
but lacked traction with uncertainties on global inflation and
domestic infections keeping investors from testing major
resistances on the upside.
The Nikkei share average added 0.31% to 28,642.19,
extending its recovery from a four-month low hit earlier this
month, but it faced multiple resistances around the current
levels, including the 25-day average at 28,717 and 100-day
average at 28,933.
The broader Topix ticked up 0.06% to 1,920.67.
"Lots of players, prop traders, retails and quants, are all
active in range-trading around the current levels," said Takeo
Kamai, head of execution services at CLSA.
In the very near term, the market is also capped by
expectations of outflows due to MSCI's regular rebalance on
Wednesday, as 29 Japanese shares will be excluded from its main
Few investors are eager to test the upside as they assess
whether the risk inflation in the United States and elsewhere
hastens fast enough to prompt central banks to reduce its
Domestically, elevated COVID-19 infections remain a problem
as the government appears to push ahead with holding the
Olympics in July despite health warnings against it.
Despite the small gains in the index, only about a third of
shares rose while nearly two-thirds declined on the main board.
Among gainers, Recruit Holdings rose 2.6% to hit a
record high, extending its bull run since its earnings
announcement earlier this month.
Internet firm Z Holdings rose 3.4% in heavy trade,
while Panasonic gained 3.6%.
On the other hand, steelmakers succumbed to profit-taking
after their heavy gains so far this year, with Nippon Steel
falling 4.4% and Kobe Steel losing 3.5%.
(Reporting by Hideyuki Sano; editing by Uttaresh.V and