Nikkei falls on profit-taking at start of second half of fiscal year

TOKYO: Japan’s Nikkei share average fell on Wednesday with most sectors trading in negative territory, as investors booked profits from the latest rally at the start of the second half of the fiscal year.

The Nikkei slipped 1.1% to 44,440.92 by 0212 GMT, heading for a fourth straight session of falls.

The broader Topix was down 1.67% at 3,085.38.

“It is a retreat from the rally that boosted the Nikkei until last month,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

“Investors wanted to take profits, so sold the stocks that rose the most, such as Tokyo Electron and SoftBank Group.”

The Nikkei added 5.2% in September in its sixth straight month of gains.

Chip-making equipment maker Tokyo Electron fell 1.48% on Wednesday and technology start-up investor SoftBank Group lost 1.95%, becoming the biggest drags on the Nikkei.

Tokyo Electron surged 27.6% in September in its largest monthly gain since February 2024, making it a key driver behind the Nikkei’s record high hit last month.

Chip-testing equipment maker Advantest edged up 0.17% on Wednesday, tracking overnight gains in the US chip index. It was the biggest support for the Nikkei.

All but one of the Tokyo Stock Exchange’s 33 industry sub-indexes fell.

The bank index slipped 3.15%, with Mitsubishi UFJ Financial Group and Mizuho Financial Group losing 3% and 3.6%, respectively.

The real estate firm index fell 3.19% to become the worst-performing sector.

Drug makers rose 0.75%, with Otsuka Holdings and Chugai Pharmaceutical up 4.77% and 3.04%, respectively.

Of the 1,600 stocks trading on the TSE’s prime market, 93% fell and 5% rose.