TOKYO: Japan’s Nikkei share average fell on Tuesday, as investors took profits after the benchmark index closed at a 33-year high in the previous session, while a market holiday in the U.S. added to the cautious mood.
The Nikkei closed down 0.98% at 33,422.52, after ending at 33,753.33, its highest close since March 1990, on Monday.
Of its 225 components, 150 fell, 73 rose and two were flat.
Drugmaker Daiichi Sankyo tumbled nearly 15% to lead Nikkei decliners by a wide margin, after a trial of an experimental cancer drug developed with AstraZeneca disappointed investors.
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Almost every Nikkei sector fell, led by a 3.43% slide in healthcare. Financials, however, jumped 1.69%, tracking gains in U.S. peers overnight as they raised dividends after sailing through annual stress tests. Consumer cyclicals were flat.
Japan’s broader Topix index declined 0.62% to 2,306.37.
“In terms of the Nikkei’s decline today, with U.S. markets on holiday, it’s hard to expect investors to proactively take on new positions,” said Maki Sawada, a strategist at Nomura Securities.
“Considering too that the Nikkei closed at a new high yesterday, profit-taking selling is leading today’s market moves.”
Daiichi Sankyo’s peers Astellas Pharma and Chugai Pharmaceutical slid 2.84% and 2.59%, respectively.
Robot maker Fanuc fell 2.78%. Home appliance maker Daikin Industries slipped 2.56%.
At the other end, insurer T&D Holdings ended as the Nikkei’s top gainer with a 3.97% advance.
Resona Holdings was the top performing bank, rallying 3.88%. Sumitomo Mitsui Financial Group gained 3.59% and Mizuho Financial added 3.43%.
Rakuten Group finished up 3.63%, paring earlier gains of more than 6%. The online retailer slumped to a 14-year low last week.
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