Nikkei weakens from early gains as boost from Yellen runs out of gas

TOKYO: Japanese shares trimmed early gains on Wednesday on profit-booking as US Treasury Secretary nominee Janet Yellen's call for big spending was perceived by investors as no surprise.

Nikkei share average edged down 0.36% to 28,529.97 at 0149 GMT, while the broader Topix inched down 0.52% to 1,846.20. Yellen's push for a sizable fiscal relief package in response to the COVID-19 pandemic sent the Wall Street's main indexes higher on Tuesday.

Yellen urged lawmakers to "act big" on the next package, adding that the benefits outweigh the costs of a higher debt burden.

But since Yellen's remarks have been reported by media in advance, there was no fresh reaction in the Japanese market, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.

"Yellen's speech was fully priced in today's market. Investors are selling shares for profit taking," Ichikawa said.

The decline is capped by chip and electronic component shares. Taiyo Yuden jumped 4.09% and Tokyo Electron gained 1.2%. Rohm Co rose 1.69% and TDK Corp was up 0.57%.

ANA Holdings fell 2.42% after Jiji press reported the airline would post its worst current profit for nine months through December. Japan Airlines fell 1.77%.

The largest percentage gainers in the index were Sumitomo Chemical, which jumped 8.24%, followed by Tokyo Electric Power Company Holdings gaining 5.65%.

The largest percentage losers were Daiichi Sankyo, which fell 3.73 %, followed by Z Holdings Corp losing 3.25 % and Mitsui OSK Lines losing 2.78 %.