Investors shift into rail and pharmaceuticals

Nikkei: 9,974.47 (+38.35) Hang Seng: 21,875.38 (–64.82) Shanghai Comp: 2,820.17 (+9

Nikkei: 9,974.47 (+38.35) Hang Seng: 21,875.38 (–64.82) Shanghai Comp: 2,820.17 (+9.72):THE NIKKEI share average rose yesterday buoyed by European investors scooping up cyclical shares, but trade was limited with most big players on the sidelines ahead of bank stress tests in Europe. Investors were hedging against negative test results by shifting into defensive sectors such as pharmaceuticals and railways.

Home electronics retailers like Yamada Denki bolstered the market after a media report saying Japan will revive a programme to promote energy-efficient appliances.

Strong earnings from Google spurred profit-taking in recently outperforming internet stocks such as DeNA, down 2.6 per cent at 3,920 yen, and Gree, which shed 2.5 per cent to 1,860 yen.

Fast Retailing fell 0.7 per cent to 13,440 yen after posting its fifth straight drop in quarterly profit.

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Hong Kong shares closed lower, snapping a three-week winning streak to record its worst week in almost three months, with Chinese property names among the top losers. Chinese Overseas Land Investment and Chinese Resources Land were the top two losers among benchmark constituents. – (Reuters)