TOKYO: Japan’s Nikkei share average closed lower on Thursday as investors sold stocks to book profits after a recent rally, with chip-related shares dragging on the index the most.
The Nikkei fell 0.94% to close at 39,605.09, while the broader Topix slipped 1.23% to 2,735.92.
“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.”
The Nikkei crossed 40,000 to hit a five-month high of 40,398.23 on Dec. 27, 2024, but has failed to breach that level since then.
Chip-related stocks led the declines on the day, with Tokyo Electron and Advantest falling 1.83% and 2%, respectively.
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