TOKYO: Japan’s Nikkei share average ended lower on Wednesday, snapping an eight-day rally, dragged down by heavyweight technology stocks as investors took a breather.
The Nikkei index edged down 0.18% to 28,606.76, after closing at its highest close since Aug. 22 on Tuesday.
The Nikkei’s rally was driven by spillover from optimism over billionaire Warren Buffett eyeing increasing investments in the country.
The broader Topix inched down 0.02% to 2,040.38.
“Investors still believe the Nikkei will rise further to cross the close in the previous session soon, but they wanted to take a pause today,” said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute. “To prove that, undervalued stocks continued to rise.”
The insurance sector rose 2.31% to become the top performer among the Tokyo Stock Exchange’s 33 industry sub-indexes.
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The banking sector gained 1.16% and energy explorers and the steel sector gained 0.95%, respectively. Electronics component maker TDK lost 1.81% to become the biggest drag for the Nikkei.
Chip-making equipment maker Tokyo Electron was flat and silicon wafer maker Shin-Etsu Chemical lost 0.53%. Luxury toilet maker Lixil fell 3.4% after cutting its annual profit forecast for the second time.
Of the Nikkei components, 103 stocks advanced, while 110 fell and 12 were flat.
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