TOKYO: Japan’s Nikkei share average fell on Thursday as investors sold stocks to book profits from a recent rally, with chip-related shares dragging on the index the most.
The Nikkei had fallen 0.76% to 39,678.93 by the midday break, while the broader Topix was down 0.77% to 2,748.70.
“The Nikkei has risen to a level that prompted investors to sell stocks to secure profits,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
“Investors need new market moving-cues to believe that the Nikkei will rise further, and that would be the domestic corporate outlook,” he said.
Japan’s Nikkei share average crossed 40,000 to hit a five-month high of 40,398.23 on Dec. 27, but has failed to breach that level since then.
Chip-related shares led the declines on Thursday, with Tokyo Electron and Advantest falling 1.54% and 0.86%, respectively. Technology start-up investor SoftBank Group slipped 0.64% and Uniqlo-brand owner Fast Retailing declined 0.25%.
“With the US markets being closed later in the day, investors were cautious and the index was hovering near the bottom end of the recent trading range,” said Takehiko Masuzawa, trading head at Phillip Securities Japan.
The US stock markets will be closed on Thursday for a national day of mourning to mark the death of former President Jimmy Carter.
All but four of the Tokyo Stock Exchange’s 33 industry sub-indexes fell, with the shipping sector losing 4.87% to become the worst performer.
Japan’s Nikkei rises more than 2% as chip-related shares rally
Kawasaki Kisen fell 6% and Nippon Yusen lost 4.82%, becoming the worst performers on the Nikkei.
Drug maker Chugai Pharmaceutical rose 3.35% to become the top performer on the Nikkei. Of more than 1,600 stocks trading on the TSE’s prime market, 26% rose and 70% fell, with 3% trading flat.
Comments
Comments are closed for this article.