TOKYO: Japan’s Nikkei stock average slipped on Monday, with investors locking in profits following a nine-day winning streak ahead of the fiscal year-end this week.
The Nikkei was down 0.58% at 27,987.20, as of midday break, following an almost 12% surge over nine days, when the benchmark touched a five-week high of 28,338.81.
The broader Topix slid 0.34% to 1,974.73. “It’s not surprising that after a nine-day winning streak, there would be a strengthening sense of caution about taking stocks higher,” said a trader at a domestic securities firm.
“It’s natural that profit-taking would be the focus of trade now.” The Nikkei finished the morning of its lows though, buoyed by the Bank of Japan (BOJ) offer to buy an unlimited amount of 10-year government bonds, displaying its commitment to its uber-dovish yield curve control policy after the benchmark yield approached the implicit policy ceiling.
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The yen weakened past 123 per dollar following the BOJ’s action, supporting shares of exporters such as Toyota Motor, which rose 0.71%. There were 107 advancers in the Nikkei index against 112 decliners, and six were flat.
Energy shares formed the best performing sector, rallying 1.61%, with crude oil prices still at very elevated levels despite a pullback on Monday.
Basic materials, though, were the biggest drag by far with a 1.85% slump.
Japan’s chip giants also retreated, tracking a drop in their US peers in the previous session. Tokyo Electron and Advantest each dipped 0.52%.
The biggest loser by index points was Uniqlo store operator Fast Retailing, sliding 2.3%. Tech investor SoftBank Group also stood out for its nearly 1% decline.
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