Tokyo: Shares end mixed as growth stocks drag ahead of US jobs data

[TOKYO] Japanese shares ended on a mixed note on Friday, weighed down by growth shares, as investors awaited a key US payroll report that could intensify worries over inflation and taper talks from the Federal Reserve.

The Nikkei average ended 0.4 per cent lower at 28,941.52 after two days of gains, while the broader Topix managed to close 0.03 per cent higher at 1,959.19, its fourth straight day of gains.

Growth shares fell by 0.34 per cent, while value shares added 0.37 per cent, as investors sold tech shares and stay-at-home winners ahead of monthly US non-farm payrolls data due later on Friday. A strong reading could raise bets over possible tapering of stimulus measures by the Fed and sap risk appetite.

SoftBank Group, whose Vision Fund owns global tech firm shares, lost 1.3 per cent.

Industrial robot makers posted sizable losses, with Fanuc losing 2.2 per cent and Yaskawa Electric dropping 0.8 per cent.

Some of last year's star performers crumbled. Medical support service operator M3 shed 5 per cent while bicycle maker Shimano shed 2.5 per cent.

Still, the market received some support from Japan's accelerated vaccination programme ahead of the Tokyo Olympics.

"Japan's slow vaccination had been a reason to sell stocks. But now, about one in 10 people have got at least one shot, which is much better than just 1 per cent about a month ago," said Takashi Hiroki, chief strategist at Monex Securities.

Many railway firms gained, with West Japan Railway adding 1 per cent and Central Japan Railway advancing 0.9 per cent.

Investors also scooped up shares of large companies, including Toyota Motor, which gained 1.6 per cent to a record high, having risen in 10 of the last 11 sessions.

Hitachi added 2.1 per cent to hit a 20-year high, while Mitsubishi Chemical rose 2.2 per cent to a two-year high.

Semiconductor firm Lasertec became the most actively traded stock on the main board, rising 0.9 per cent and extending its winning streak to 10 days.

REUTERS