Japanese shares climb record peaks; market eyes US data
By Brigid Riley
TOKYO, July 5 (Reuters) -Japan's Nikkei share average and the broader Topix index both touched record highs on Friday, although they eased somewhat as investors booked profits and positioned carefully before key U.S. economic data due later in the day.
The benchmark Nikkei index .N225 exceeded its record high hit on March 22 to jump as high as 41,100.13 earlier in the session, while the broader Topix .TOPX hit an all-time peak of 2,906.80, after breaking its previous record set in December 1989 on Thursday.
The Nikkei was up 0.3% at 41,051.49 by the midday break, while the Topix .TOPX was down 0.11% at 2895.42.
With both the indexes reaching record figures, there's a "sense of accomplishment" in the market, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
But gains eased as the market looked ahead to U.S. nonfarm payrolls report out later on Friday, as investors adjusted positions ahead of the closely watched data.
Given the Topix's and Nikkei's gains, there was also some profit-taking, analysts said.
Japanese shares have gotten a boost this year in part from corporate governance reforms, which fuelled expectations that local companies will continue to increase returns.
A weak yen, meanwhile, has supported export-related shares such as automakers, and an exit from the Bank of Japan's ultra-easy monetary policy is lifting bank shares.
These last two factors in particular helped the broader Topix hit all-time highs, said Sumitomo Mitsui DS Asset Management's Ichikawa.
"It feels like the environment in Japan has changed considerably, including the economic situation."
Heavyweight stocks lifted the Nikkei. Chip-related Tokyo Electron 8035.T rose 1.9% and Uniqlo parent company Fast Retailing 9983.T was up 0.9%
AI-focused startup investor SoftBank Group 9984.T edged about 1% higher.
Automakers dragged on Friday, with Toyota Motor 7203.T falling 0.9% and Honda Motor 7267.T down 2.3%.
Reporting by Brigid Riley; Editing by Rashmi Aich
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