Japanese shares end higher as cyclicals rally; heavyweights' decline caps gains

TOKYO: Japanese shares closed higher on Thursday as investors picked up beaten-down cyclical stocks, although gains were capped by investors cutting their positions in some index heavyweights.

The Nikkei index ended up 0.6 per cent at 29,211.64, while the broader Topix edged up 0.27 per cent to 1,924.92.

"Growth-related shares have helped the market, but a sell-off in index heavyweights has also weighed," said Koichi Kurose, chief strategist, Resona Asset Management.


The Nikkei had rallied to a 30-year high last month on expectations of an economic rebound and better-than expected corporate earnings.

Shipping firms jumped, making them the largest gainers on the Nikkei, with Kawasaki Kisen surging 12.71 per cent, Mitsui OSK Lines gaining 7.45 per cent and Nippon Yusen rising 7.3 per cent.

Shinsei Bank jumped 5.46 per cent after a report that the bank acquired a 10 per cent stake in Australia's credit cards and consumer finance company Latitude Financial Group.

Chip-related shares fell, with Tokyo Electron declining 0.59 per cent and Murata Manufacturing losing 3.09 per cent.

Medical equipment maker Terumo, down 2.2 per cent, weighed on the Nikkei index the most, followed by Tokyo Electron.

Drug makers also fell, with Astellas Pharma losing 1.43 per cent and Daiichi Sankyo falling 1.22 per cent.

The stocks that gained the most among the top 30 core Topix names were Recruit Holdings, up 2.74 per cent, followed by Nidec which rose 1.72 per cent.

The underperformers among the Topix 30 were Murata Manufacturing, followed by Keyence Corp losing 2.73 per cent.

There were 127 advancers on the Nikkei index against 93 decliners.