Tokyo: Nikkei edges lower before key US economic data

[TOKYO] Japan's benchmark index ended slightly lower on Tuesday as investors awaited two key US economic reports, though declines were capped by hopes of a domestic economic normalisation on delayed-but-steady rollouts of Covid-19 vaccines.

The Nikkei share average inched down 0.16 per cent to close at 28,814.34, while the broader Topix inched up 0.17 per cent to 1,926.18.

"Investors want to confirm the strength of US recovery from the factory and jobs data to be announced later," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.

US factory activity numbers will be released on Tuesday, while payrolls data, due on Friday, will be the main event of the week. Median jobs forecasts are pegged at 650,000, but the outcome is uncertain following April's unexpectedly weak 266,000 gain.

Among shares and sectors in Japan, steel and drug makers led the Nikkei's declines, with JFE Holdings falling 4.32 per cent and Nippon Steel losing 3.36 per cent.

Daiichi Sankyo fell 2.57 per cent and Chugai Pharmaceutical lost 1.95 per cent.

IHI jumped 5.82 per cent after Nomura Securities changed its rating for the heavy-industry manufacturer, while its peer Mitsubishi Heavy Industries gained 3.35 per cent after the brokerage raised its target price.

Renesas Electronics gained 3.32 per cent even as the chipmaker said restoring full production capacity at a fire-damaged chip plant would take longer than expected.

The stock that gained the most among the top 30 core Topix names was Toyota Motor, up 3.38 per cent, followed by Murata Manufacturing, which rose 2.05 per cent.

Daiichi Sankyo was the worst performer among the top 30 core Topix names, followed by Nippon Telegraph and Telephone which lost 1.93 per cent.

REUTERS