Nikkei's winning streak runs into profit-taking

lunes 25 de mayo de 2015 22:23 GYT
 

* Low trading volume may be a sign for correction - analyst
    * Tomy falls after Marunouchi Capital sells entire stake
    * Kyushu Electric rises after nuclear reactor restart
announcement

    By Ayai Tomisawa
    TOKYO, May 26 (Reuters) - Japan's Nikkei share average edged
down on Tuesday morning, snapping a seven-day winning streak as
investors took profits after the recent gains made on optimism
over the economy's recovery and higher shareholder returns.
    The Nikkei 225 dropped 0.1 percent to 20,395.69 by
mid-morning, flitting between positive and negative territory.
    If the benchmark index close stronger it would make gains
for eight straight days -  the longest winning streak since last
August.
    The Nikkei has gained 4.3 percent over the past seven days,
supported by the brighter outlook of shareholders, strong
corporate earnings, optimism for the recovering economy and
expectations that the U.S. Federal Reserve will hold off from
raising interest rates soon.
    But some analysts warned that trading volume has been thin 
in the past two days, which may have been partly due to fewer
market participants over Monday's U.S. holiday but could be a
sign for a market correction.
    Trading volume on the Tokyo Stock Exchange's main board was
thin on Monday, with only 2.05 billion shares changing hands,
the lowest in a month. Volume stood at 2.075 billion shares on
Friday. 
    "If the stock market is rising with high volume, it's a sign
that the market will likely rise further, but when the market is
marginally higher with low volume, there is a risk behind the
rise," said Norihiro Fujito, a senior investment strategist at
Mitsubishi UFJ Morgan Stanley Securities, citing a possibility
of unwinding bullish positions.
    "Whether it's a political risk in the euro zone, volatility
in the bond market or the timing of a U.S. rate hike, we can't
ignore these risks," he said.
    Exporters lost ground, with Toyota Motor Corp 
falling 0.4 percent, Honda Motor Co dropping 0.3
percent and Sony Corp shedding 1.2 percent.
    Tomy Co tumbled as much as 5.6 percent after it
said buyout firm Marunouchi Capital sold its entire stake in the
Japanese toymaker to SMBC Nikko Securities. 
    Outperforming the market was Kyushu Electric Power,
which rose as much as 4.5 percent after it said it hoped to
restart the 890-megawatt No.1 reactor at the Sendai nuclear
plant in southwestern Japan in late July. 
    The broader Topix dropped 0.2 percent to 1,656.36
and the JPX-Nikkei Index 400 shed 0.2 percent to
14,976.38.    

 (Editing by Simon Cameron-Moore)