TOKYO: Japan’s Nikkei share average snapped a five-day winning streak to fall more than 1% on Tuesday, as investors sold stocks amid uncertainty over US-Japan trade talks.
The Nikkei fell 1.24% to 39,986.33, slipping from the highest level since mid-July, which it reached in the previous session.
The broader Topix slipped 0.73% to 2,832.07.
“The market was overheated, but there were some factors that boosted demand last month,” said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management.
Japanese equities mirrored a rally in US stocks in the past several sessions, but demand was also supported by dividend payouts investors received after corporate shareholders’ meetings in June, as well as corporate share buybacks, said Ueno.
The Nikkei rose 6.6% in June, marking its biggest monthly gain since February 2024. In the last five sessions of June, the index gained 5.5%. The Relative Strength Index (RSI), a technical measure for investment momentum, dropped to 66.6 on Tuesday from the “overbought” condition of 74.5.
Comments
Comments are closed for this article.