TOKYO: Japan’s Nikkei share reversed course to end lower on Monday, as investors locked in profits following a recent rally and shifted their focus to domestic corporate earnings. The Nikkei dropped 1.1% to close at 40,998.27, after rising as much as 0.2% earlier in the session. The broader Topix slipped 0.72% to 2,930.73.
“Investors sold stocks to book profits from a recent rally; that’s a short answer to today’s declines,” said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.
“But they sold stocks because the shares jumped last week, and were concerned that corporate earnings may not justify the current level of the equities.”
Last week, the Nikkei climbed to a one-year high after Japan and the United States struck a deal to lower the hefty tariffs US President Donald Trump threatened to impose on goods from Japan.
Chip-related shares led the declines, with Advantest tanking 8.96% to become the biggest drag in the Nikkei.
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