CORRECTED-Nikkei steps back on profit-taking after long rally

miércoles 3 de junio de 2015 02:22 GYT
 

(Correcting the length of period of longest rally in the lead)
    * Profit-taking set in after 12-day rally until Monday
    * Market mood still strong on hopes on earnings, higher
returns
    * Interest rate sensitive shares drop, real estate firms
worst hit

    By Hideyuki Sano
    TOKYO, June 3 (Reuters) - Japanese shares slipped on
Wednesday as investors booked profits from the market's longest
rally in nearly three decades, with interest rate sensitive
stocks sold the most after bond yields rose globally.
     The Nikkei share average fell 0.5 percent to 20,449.20
. The market had rallied for 12 straight sessions until
Monday, its longest winning streak since 1988.
    "The long rally was getting exhausted. Some correction is
due, and is unsurprising. Things don't move up in a straight
line," said Stefan Worrall, director of equity at Credit Suisse.
    "The mood here is still very positive in terms of the
earnings outlook of Japanese companies. The yen is on a
long-term weakening path and we could see it easily break new
lows within the next few months. That is also positive for the
market."
     A rise in Japanese and the world bond yields hurt interest
rate-sensitive stocks, such as real estate companies and power
companies.
    Real estate companies were the worst performer
among the Tokyo Stock Exchange's 33 subindustry index, falling
1.9 percent. Mitsubishi Estate fell 2.0 percent while
Mitsui Fudosan dropped 1.8 percent.
    Power companies were also a target for profit-taking after
their big gains in recent weeks. Chubu Electric Power,
Japan's biggest power company by market cap, fell 3.7 percent.
    Investors were taking profits ahead of key events in global
markets, including ongoing talks between Greece and creditors
over its rescue programmes, the European Central Bank's policy
meeting on Wednesday, and the U.S. jobs data on Friday.
    Still, many market players think Japanese shares will likely
be supported by hopes Japanese companies will boost shareholder
returns through share buybacks and higher dividend.
    A weaker yen is also expected to prop up exporters' bottom
lines, helping companies such as Komatsu and Honda
. They rose 0.6 percent and 1.7 percent, respectively on
Wednesday.
    The yen hit a 12 1/2-year low of 125.07 yen to the dollar on
Tuesday although it has bounced back to around 123.93.
    Few traders were eager to test the downside given that the
Bank of Japan has committed itself to buying 3 trillion yen of
stock ETFs (exchange traded funds) a year and the country's
biggest pension funds all plan to increase stock holdings.
    The broader Topix fell 0.3 percent to 1,668.96 while
the JPX-Nikkei Index 400 shed 0.3 percent to
15,072.85.

 (Editing by Simon Cameron-Moore)