"Today we're seeing the retracement of some of Tuesday's strong rise, which has created an environment that's ripe for profit taking," said Maki Sawada, a strategist at Nomura Securities, adding that the earnings season has been a strong one so far, helping limit declines for Japanese stocks. "Domestic earnings are certainly a key focus for the market this week, but so are U.S. inflation readings." Close to 300 companies will report earnings on Wednesday, climbing to almost 500 on Thursday, and reaching a peak at more than 1,000 companies on Friday. Strong earnings drove gains for Yokogawa Electic , which jumped 9.7%, and processed food company Nichirei Corp , which climbed 6.5%. Trading company Mitsubishi Corp , which Berkshire Hathaway holds a stake in, also rose 3.9% on firm earnings. Meanwhile, Mitsubishi Motors and Pacific Metals rounded out the top 3 Nikkei decliners, losing a little more than 9% each. (Reporting by Kevin Buckland; Editing by Rashmi Aich)
By Kevin Buckland
TOKYO, May 10 (Reuters) - Japan's Nikkei share average
slipped from a 16-month peak on Wednesday, as cautious investors
took profits ahead of crucial U.S. inflation data later in the
day that could influence the path for Federal Reserve policy.
At the same time, domestic earnings continued to produce
outsized winners and losers, with department store operator
Marui Group surging as much as 21%, while auto parts
supplier NTN Corp tumbled in excess of 10%.
The reporting season reaches a crescendo this week, and
headlining the companies reporting during the trading day on
Wednesday will be heavyweight automaker Toyota Motor ,
which was last down 0.37%.
The Nikkei declined 0.44% to 29,113.33 as of the
midday break, finishing close to the morning session's low. On
Tuesday, it had surged 1% to close at its highest level since
January 2022.
The broader Topix fell 0.51% to 2,086.85, also near
the day's low. It closed at its highest since September 2021 on
Tuesday.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.