Japan’s Nikkei falls back from record as yen rallies, tech shares retreat

TOKYO: Japan’s Nikkei share average fell back from a record high on Thursday, as the yen’s rebound weighed on exporters and a red-hot rally in technology shares lost steam.

The benchmark Nikkei 225 Index slid 1% to 53,820.46 by the midday break, snapping a three-day surge that took the gauge to an all-time high on Wednesday.

The broader Topix was more buoyant, rising 0.4%. US stocks finished lower overnight, led by a drop in the tech-heavy Nasdaq gauge.

The yen recovered from a 1-1/2-year low after fresh warnings from Finance Minister Satsuki Katayama against “excessive” moves and a US Treasury statement calling for “sound” policy from the Bank of Japan to contend with currency volatility.

“Given the recent streak of consecutive record highs, the Japanese stock market is likely to see subdued movement today unless new catalysts emerge,” said Wataru Akiyama, an equities strategist at Nomura Securities.

“Export-related stocks are broadly lower due to recent yen appreciation.”

There were 137 advancers on the Nikkei against 84 decliners.

The largest losers in the index were software services provider Shift, down 7.6%, followed by artificial intelligence sector heavyweights SoftBank Group and Advantest, which lost more than 4.5% each.

The largest gainers in the index were retailer Ryohin Keikaku, up 10%, followed by consulting services provider BayCurrent, which jumped 5.1%.

In the broader market, Toyota Industries surged 5.9% after Toyota Motor agreed to raise its offer to take the forklift maker private. Saizeriya jumped 5.8%, touching an all-time high after the Italian restaurant chain reported record profit for the September to November quarter.