TOKYO: Japan’s Nikkei share average ended lower for a third straight session on Tuesday, as concerns over the domestic corporate outlook led investors to lock in profits from a recent rally.
The Nikkei fell 0.79% to 40,674.55. The broader Topix declined 0.75% to 2,908.64.
Japan is in the middle of its earnings season, and investors are cautious as a 15% tariff to be imposed on its exports to the United States could hit corporates, said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management.
The tariff, part of the trade deal Japan struck with the US last week, is lower than the 25% that US President Donald Trump had earlier threatened to impose on the country.
That, and expectations that Prime Minister Shigeru Ishiba would step down sent the Nikkei to its highest level in a year last week, Ueno said.
“The market hoped someone who promotes measures to stimulate the economy would replace him (Shigeru Ishiba),” he said.
Ishiba vowed to remain in his post after his ruling coalition suffered a bruising defeat in upper house elections, prompting some in his own party to doubt his leadership as the opposition weighed a no-confidence motion.
On Tuesday, chip-related stocks led the decline, with Lasertec falling 8.3% to become the worst performer on the Nikkei.
Tokyo Electron fell 1.2% to become the biggest drag for the Nikkei. Advantest slipped 1%.
Comments
Comments are closed for this article.