TOKYO: Japanese shares were little changed on Wednesday, as gains in technology stocks tracking an overnight Wall Street rally were snapped by a fiscal year-end selloff by domestic funds.
The Nikkei index inched up 0.03% to close at 29,036.56, while the broader Topix gained 0.11% to 1,919.74.
Nikkei rallied to a 30-year high last month on expectations of a swift economic rebound and robust corporate earnings. Fund houses are booking profits before the fiscal year ends this month.
Technology shares rose, tracking an about 4% gain in tech-heavy Nasdaq in its biggest single-day rise since Nov. 4, as US bond yields retreated. Fanuc, which gained 3.35%, was the biggest contributor to the Nikkei, followed by phone operator KDDI, which rose 3.44%. Chip testing equipment maker Advantest rose 2.34% and Sony rose 1.76%.
Terumo changed its course to fall 0.33% after rising on the news that the medical equipment maker has developed a new syringe that can get seven doses out of each vial of COVID-19 vaccine made by Pfizer Inc.
Steel and mining sectors fell the most among the 33 sector sub-indexes on Topix, with JFE Holdings, Kobe Steel and Nipon Steel dropping 3.4%, 3.32% and 2.54%, respectively.
Index heavyweights Fast Retailing, a Uniqlo brand clothing shop operator, lost 2.41% and online medical platform M3 fell 6.19%. “This is all about the move toward the fiscal year end,” said Shoichi Arisawa, general manager for investment research department at IwaiCosmo Securities.
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