Roundup: Tokyo stocks close slightly higher but capped by U.S. inflation concerns

0 Comment(s)Print E-mail Xinhua, May 26, 2021
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TOKYO, May 26 (Xinhua) -- Tokyo stocks closed marginally higher Wednesday to book their fifth straight session of gains as investors bought on dips following a weak lead from Wall Street overnight on inflation concerns.

The 225-issue Nikkei Stock Average gained 88.21 points, or 0.31 percent, from Tuesday to close the day at 28,642.19.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 1.15 points, or 0.06 percent, to finish at 1,920.67.

Local brokers said that after a slow start, buying increased in later trade as investors sought out undervalued shares, with chip-linked issues again finding favor on hopes for continued demand.

They added that transportation issues that had come under heavy selling pressure previously, owing to concerns over Japan's possible COVID-19 state of emergency extension and slow vaccination rollout, were bought back as the selloff was deemed excessive.

"Some semiconductor-related shares were higher on expectations of continued robust chip demand, while air and land transportation issues were bought as sell-offs amid the pandemic were regarded as excessive," Shingo Ide, chief equity strategist at NLI Research Institute, was quoted as saying.

But investors were reluctant to test the market's upside, strategists here said, as upcoming data released Friday in the United States about personal consumption expenditures could lead to concerns about inflation and the Federal Reserve rolling out tapering measures earlier than expected, Îde added.

By the close of play, air transportation, land transportation and service issues comprised those that gained the most, and issues that fell outpaced those that rose by 1,308 to 768 on the First Section, while 116 ended the day unchanged.

Tech-issues continued to trade higher, with TDK rising 1.4 percent, Shin-etsu Chemical advancing 1.0 percent, while Screen Holdings ended the day 3.4 percent higher.

Steelmakers lost ground however, as investors looked to secure gains, with Kobe Steel dropping 3.5 percent and Nippon Steel losing 4.4 percent.

On the main section on Wednesday, 1,096.63 million shares changed hands, rising from Tuesday's volume of 992.96 million shares.

The turnover on the third trading day of the week came to 2,413.80 billion yen (22.16 billion U.S. dollars). Enditem

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