TOKYO: Japan’s Nikkei share average fell on Tuesday as investors booked profits amid few fresh trading cues, while the post-election euphoria was ebbing and the earnings season was winding down.
The Nikkei was down 0.4 percent to close at 56,566.49 on the day, and declining 1.9 percent over four consecutive sessions. The broader Topix dropped 0.7percent to 3,761.55. “There’s just far too little in the way of catalysts,” said Ryotaro Sawada, senior analyst at Tokai Tokyo Intelligence Laboratory. “We’re seeing some technical profit-taking.” The Nikkei’s 14-day relative strength index (RSI) is at 64, after touching 72 on Thursday. A level above 70 indicates gains have stretched too far.
Earnings season is wrapping up in the world’s fourth-largest economy, with a little over half of Nikkei constituents that have reported so far beating analysts’ estimates, LSEG data showed.
The post-general-election rally from last week, following fiscal dove Prime Minister Sanae Takaichi’s landslide victory, also appeared to fade, Sawada said.
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