TOKYO: Japan’s Nikkei share average fell on Tuesday, as investors sold stocks after sharp gains in the previous session, while caution prevailed ahead of key central bank meetings in Japan and the United States.
The Nikkei fell 0.96% to 38,101.24 by the midday break. The index rose 2% in the previous session, rebounding from a three-month low hit last week.
The broader Topix fell 0.87% to 2,735.7.
“The Nikkei rose too much yesterday and the market did not find any reason to justify further gains today,” said Jun Morita, general manager of the research department at Chibagin Asset Management.
“After all, the index came back to where it was before it started a rally to hit a record high earlier this month.”
Markets are pricing almost no chance of a US rate cut this week but have fully priced a 25 basis-point reduction for September.
The Bank of Japan is expected to announce quantitative tightening plans at this week’s meeting and the market is divided about a rate hike.
Uniqlo-brand owner Fast Retailing fell 2.19% to drag the Nikkei the most.
Technology investor SoftBank Group lost 2.06% and chip-equipment maker Tokyo Electron slipped 1.64%.
Fanuc jumped 3.26% to become the biggest support for the Nikkei after the robot maker raised its annual operating profit forecast by 0.8%.
Japan’s Nikkei rebounds in broad-based buying after Wall Street comeback
Pasona Group surged 13.4% after a regulatory filing showed activist investor Oasis Management owns 5.02% stake in the staffing and outsourcing company.
Of the 225 components of the Nikkei, 46 stocks rose and 175 fell, with three trading flat.
Comments
Comments are closed for this article.