TOKYO: Japan’s Nikkei share average fell on Wednesday as traders locked in recent gains and appreciation in the yen sapped demand for exporters.
Tokio Marine Holdings sank 2.6% and triggered a decline in insurance companies after forecasting a 12% drop in annual profit. Mizuho surged 2.7%, leading banks higher after announcing a plan to shed cross-shareholdings.
The benchmark Nikkei has climbed 4.4% since US President Donald Trump announced sweeping tariffs on April 2, only to pause most of them as he sought bilateral trade deals.
“Stocks have been on a rise, but now that earnings have come to an end, I think there’s a slight lack of catalysts in the market,” said Wataru Akiyama, a strategist at Nomura Securities.
“We may be seeing an adjustment in the stock market after the recent rally has led to short-term overheating.”
Japan’s export-reliant economy and equity market are still vulnerable to how trade talks with the US pan out.
The nation’s lead trade negotiator, Ryosei Akazawa, will head to the US on Friday for a third round of talks, the Nikkei newspaper reported.
Data on Wednesday showed Japanese exports rose for the seventh straight month in April but shipments to the US fell, highlighting the toll of Trump’s tariffs.
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