TOKYO: Japan’s Nikkei share average reversed course to trade lower on Wednesday as investors sold stocks to book profits, while the broader Topix is set to snap its longest winning streak in nearly 16 years.
The Nikkei fell 0.81% at 37,874.59 by the midday break.
The broader Topix fell 1.21% to 2,738.59, on course to snap a 13-day winning streak, its longest since August 2009.
The Nikkei hit a three-month high on Tuesday, buoyed by hopes for more deals between major economies after the US and China agreed to temporarily slash harsh reciprocal tariffs.
“The market had set the 38,000 as a target after the Nikkei tanked last month, following the announcement of (US President Donald) Trump’s tariffs,” said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management.
Japan’s Nikkei rises on US-China trade deal hopes
“The index hit that target earlier than expected, and that prompted investors to sell stocks to book profits today.”
Uniqlo-brand owner Fast Retailing fell 1.19% to drag down the Nikkei the most. Healthcare equipment maker Terumo fell 3.3%.
Yaskawa Electric fell 4.44% after the robot maker was excluded from MSCI’s standard index in its regular reshuffle.
Heavy machinery maker IHI rose 2.03% as it was included in the index.
Of more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 15% rose and 82% fell, with 1% trading flat.
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