TOKYO: Japan’s Nikkei share average fell 1 percent on Wednesday as investors booked profits after a rally that took the gauge to a record close in the previous session. The Nikkei fell 1.06 percent to 51,961.98, while the broader Topix slipped 0.77 percent to 3,511.34.
The Nikkei rose 4 percent in the first two sessions of the year, notching a record closing high on Tuesday.
The market also weighed the impact of China’s ban on exports of dual-use items to the country. “China’s export ban was a negative cue, but overall, investors sold stocks as the market rose sharply in the past two sessions,” said Naoki Fujiwara, senior fund manager at Shinkin Asset Management.
“But the money was circulating. The selloff was focused on large stocks, and smaller shares were firm.”
The Topix’s small-cap index edged up 0.39 percent. Some 55 percent stocks on the Tokyo Stock Exchange’s (TSE) prime market rose, while 41 percent fell and 3 percent traded flat.
China has banned exports of dual-use items to Japan that can be used for military purposes, according to its Commerce Ministry statement on Tuesday.
Dual-use items are goods, software or technologies that have both civilian and military applications, including certain rare earth elements that are essential for making drones and chips.
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