Tokyo shares drop on Wall St falls, profit-taking

TOKYO: Tokyo stocks fell on Thursday following losses on Wall Street and profit-taking after recent gains.

The benchmark Nikkei 225 index lost 0.75 percent, or 249.94 points, to 32,991.08, while the broader Topix index fell 0.38 percent, or 9.15 points, to 2,383.38.

The adjustment came due to profit-taking after the Nikkei rose for eight straight sessions until Wednesday, fuelled by the yen’s weak trend and optimism about the earnings of Japan Inc.

But selling pressure drove down the market after fresh US data showed the strength of the US economy, fanning speculation that the Federal Reserve may hike interest rates, triggering falls on Wall Street.

“There is no market that continues rising. Adjustments reassure the health of the market,” Daiwa Securities said in a commentary.

Rising US yields also limited the momentum of the stock market, the brokerage said.

Overnight falls in iPhone producer Apple’s stocks drove down shares of parts suppliers.

Chipmaker Murata Manufacturing dropped 4.98 percent. Electronics parts maker Taiyo Yuden gave up 3.69 percent. Advantest, which makes tests for semiconductors, plunged 6.63 percent. Tokyo Electron, which makes tools to build semiconductors, fell 0.70 percent.

Among other major shares, auto giant Toyota lost 0.53 percent and SoftBank Group fell 0.77 percent, while Sony Group slipped 0.47 percent.

Mitsubishi Heavy Industries rose 2.32 percent after its rocket successfully launched Japan’s latest Moon mission on Thursday.

The dollar stood at 147.47 yen against 147.67 yen in New York.