TOKYO, May 26 (Reuters) - Japanese shares were little
changed on Wednesday, with their rally from 4-month lows showing
signs of losing steam, as investors grapple with uncertainties
on global inflation outlook and the country's economic
The Nikkei share average eked out a small gain of
0.18% to 28,604.47 but the broader Topix shed 0.05% at
While the Nikkei has been recovering from a 4-month low hit
earlier this month, it is facing multiple resistances around the
current levels, including the 25-day average at 28,714 and
100-day average at 28,932.
"Lots of players, prop traders, retails and quants, are all
active in range-trading around the current levels," said Takeo
Kamai, head of execution services at CLSA.
In the very near term, the market is also capped by
expectations of outflows due to MSCI's regular rebalance on
Wednesday, as 29 Japanese shares will be excluded from its main
Few investors are eager to test the upside as they assess
whether the risk inflation in the United States and elsewhere
hastens fast enough to prompt central banks to reduce its
Domestically, elevated COVID-19 infections remain a problem
as the government appears to push ahead with holding the
Olympics in July despite health warnings against it.
On the main board, only a third of shares rose while nearly
Among gainers, Recruit Holdings rose 3.5% to a
record high, extending its bull run since its earnings
announcement earlier this month.
Internet firm Z Holdings rose 5.4% in heavy trade
while Panasonic gained 3.9%.
On the other hand, steelmakers succumbed to profit-taking
after their heavy gains so far this year, with Nippon Steel
falling 4.4% and Kobe Steel losing 3.5%.
(Reporting by Hideyuki Sano; editing by Uttaresh.V)