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Japan Shares Edge Up as U.S. Data Eases Fed Taper Concerns

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TOKYO, June 7 Reuters Japanese shares closed higher on Monday after U.S. jobs data eased concerns over an early tapering from the Federal Reserve, but heavy profittaking capped gains amid caution before U.S. inflation readings due later this week.

The Nikkei share average edged up 0.27 to close at 29,019.24, after rising as high as 1 to reach a nearly fourweek high earlier in the session.

The broader Topix reversed course to tick up 0.08 to 1,960.85.

The U.S. economy added 559,000 nonfarm payrolls in May, data showed on Friday, below economists forecast of 650,000, reducing expectations of an early tapering in the Feds asset purchase.

However, investors remain cautious as they look for more clues on possible tapering from the U.S. consumer price index CPI report this week, said Takatoshi Itoshima, strategist at Pictet Asset Management.

Investors want to confirm whether there are risks for inflation from the CPI report, said Itoshima.

Fridays gain in the Nasdaq index boosted Japanese tech stocks, with electronic parts makers Ibiden rising 3.51 and TDK Corp adding 2.34.

Shippers benefited from global bullish sentiment, rising 2.55 to a 10year peak, with Nippon Yusen rising 2.37, Kawasaki Kisen jumping 5.51 and Mitsui OSK Lines adding 2.26.

However, profittaking sank steelmakers, which had risen sharply this year on signs of a global recovery.

The steelmaker subindex dropped 4.71, with Nippon Steel losing 5.74, JFE Holdings shedding 7.2 and Kobe Steel falling…

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