Japanese shares edge down as tech stocks weigh

TOKYO: Japanese shares inched down in seesaw trading on Friday as technology stocks pulled back from early gains, with investors remaining cautious about the pace of domestic economic recovery.

The Nikkei share average inched down 0.06% to 28,939.16 by 0225 GMT, while the broader Topix was down 0.23% to 1,952.24.

"Japan's technology stocks are bought as the Nasdaq's gain and the fall in US interest rates lifted investor sentiment," said Jun Morita, general manager of the research department at Chibagin Asset Management.

"But the market was weighed down by uncertainties. It's hard for investors to decide to sell or buy when the Nikkei hovers around the 29,000-level as they are not necessarily optimistic about the Japanese market outlook."

Some market participants say it is still doubtful Japan's economy will recover at the same pace as that in the United States and other advanced nations due to the fourth wave of the pandemic.

Yutaka Miura, a senior technical analyst at Mizuho Securities, said concerns over potential tapering by the Federal Reserve also weighed on investor sentiment.

Airlines declined the most, while financial firms and real estate firms also fell.

Technology firms advanced, with a medical platform M3 Inc rising 2.18%, Advantest gaining 0.48% and Tokyo Electron edging up 0.17%.

Drugmaker Eisai jumped 7% after a sharp fall in the previous session amid a volatile trade this week after US regulators approved of a drug developed by the firm and Biogen for Alzheimer's disease.

Toshiba fell 1.48% after a report from independent investigators said the conglomerate asked the trade ministry to help counter activist investors at its annual general meeting last July.