TOKYO: Japan’s Nikkei share average fell on Wednesday, after a sharp gain in the previous session, weighed down by heavy technology stocks that tracked Wall Street’s lower.
The Nikkei fell 0.6% to 54,384.53 as of 0206 GMT. The broader Topix reversed course to inch up 0.12% to 3,650.02.
“The Nikkei fell, but overall sentiment was not bad as smaller shares were firm,” said Naoki Fujiwara, senior general manager at Shinkin Asset Management.
“Whether this trend will continue or not depends on the outcome of the election and the fate of the consumption tax.
If the tax on food is not cut or reduced, market theme will shift to larger stocks, such as defence and artificial intelligence.“
The Nikkei climbed nearly 4% to close at a record high on Tuesday in its biggest daily gain since October 25.
Chip-testing equipment maker Advantest fell 2% to become the biggest drag on the Nikkei.
Chip-testing equipment maker Tokyo Electron lost 1.64%.
Nintendo fell 10% after maintaining its annual earnings and hardware forecasts.
The “Super Mario” maker on Tuesday posted an 23% jump in quarterly profit on robust sales of its Switch 2 console. Ibiden, a maker of high-performance electronics and ceramics, tanked 12.6% to become the worst percentage loser on the Nikkei.
Topix’s smaller share index overperformed the main index, with its small share index rising 0.63% and the Mid400 index gained 0.49%.
Of more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 65% stocks rose and 31% fell, with 2% traded flat.
Bucking the trend, fibre optic cable makers rose, with Furukawa Electric and Fujikura jumping 8.9% and 5.5%, respectively.
Automakers rose, with Toyota Motor advancing 3.5% to become the biggest contributor to the Topix’s gain. Honda Motor rose 2.38%.
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