Japanese stocks end lower as cyclical stocks lag; Toshiba slips

TOKYO, June 11 (Reuters) – Japanese stocks ended slightly lower on Friday, with losses in cyclical stocks, as well as banks and real estate companies, offsetting gains from heavy tech companies.

The Nikkei stock average closed 0.03% lower at 28,948.73, while the broad Topix slipped 0.14% to 1,954.02. For the week, the Nikkei traded in a narrow range, posting a marginal gain of 0.02%.

Toshiba Corp lost 1.59% after an explosive survey released Thursday found that the company and government agreed to rely on foreign investors to comply with management’s wishes.

“Japanese tech stocks are being bought as the Nasdaq gain and lower US interest rates have boosted investor sentiment,” said Jun Morita, chief executive of the research department at Chibagin Asset Management.

“But the market was plagued with uncertainties. It is difficult for investors to decide whether to buy or sell when the Nikkei is hovering around 29,000 because they are not necessarily optimistic about the outlook for the Japanese market.”

Some market participants doubt that the Japanese economy will recover as quickly as that of the United States and other advanced countries, as the country grapples with a fourth wave of the pandemic.

Recruiting agency Recruit Holdings fell 2.53%, the biggest drag on the Nikkei, while machine makers Kubota and Komatsu fell 4.49% and 3.24%, respectively.

Banks and real estate companies fell the most among the industry’s 33 sub-indexes.

Tech companies advanced, with M3 Inc medical platform up 3.12%, Advantest 0.61% and Tokyo Electron 0.65%.

Drugmaker Eisai jumped 7.0% after falling sharply in the previous session amid volatile trade this week following U.S. regulators’ approval of a drug developed by the company and Biogen for Alzheimer’s disease. (Reporting by Junko Fujita; Editing by Ramakrishnan M.)

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