Nikkei snaps 5-day winning streak on falling U.S. shares

miércoles 28 de mayo de 2014 21:41 GYT
 

* Sentiment sour as weak yen trend pauses - fund manager
    * Sanix soars on strong mid-term business plan

    By Ayai Tomisawa
    TOKYO, May 29 (Reuters) - Japan's Nikkei share average
snapped a five-day winning streak on Thursday morning as
investors took profits on the recent gains after sentiment was
soured by a pullback in U.S. shares.
    The Nikkei dropped 0.5 percent to 14,597.09 in
mid-morning trade. The benchmark index had gained for five
straight sessions as investors' appetite for equities has been
buoyed by strong U.S. economic data and China figures.
 
    Analysts said that the Nikkei was likely to be contained in
a narrow 14,300-14,750 range for the time being, noting that the
market was waiting for overseas data such as U.S. job numbers in
the coming week, and Prime Minister Shinzo Abe's reform plans in
June.
    Abe is expected to flesh out the details of his growth
strategy, the third arrow of "Abenomics" which is expected to
include plans to cut corporate taxes.
    "Right now, the market is waiting for new cues. The weak yen
trend has paused, so investors are taking a wait-and-see
approach," said Naoki Fujiwara, a fund manager at Shinkin Asset
Management. 
    It last traded at 101.78 compared with a high of
102.15 set on Tuesday.
    Exporters were mixed, with Toyota Motor Corp rising
0.5 percent, Sony Corp falling 1.6 percent and
Panasonic Corp dropping 0.7 percent.
    Index heavyweight stocks lost ground, with Fanuc Corp
 falling 1.9 percent and Fast Retailing Co 
dropping 1.0 percent.
    Bucking the weakness, solar power company Sanix Inc 
soared 17 percent and was the ninth most-traded stock by
turnover after announcing a strong mid-term business plan
through March 2017. The company aims to post an operating profit
of 34 billion yen in the year ending March 2017, 7.5 times more
than the company's operating profit for the year ended March
2014.
    The broader Topix dropped 0.3 percent to 1,194.69,
while the new JPX-Nikkei Index 400 shed 0.3 percent
to 10,893.20.
    
    

 (Editing by Eric Meijer)