Japan’s Nikkei slips from record high on tech drag By Junko Fujita
- The broader Topix fell 1.05% to 3,774.48 on Friday, but was up about 1% for the week
TOKYO: Japan’s Nikkei share average retreated on Friday from a record high scaled the day before, as investors sold technology stocks on caution over the index’s rapid gains.
The Nikkei fell 0.9% to 59,000.21 by 0157 GMT after gaining 5.2% in the last three sessions. It has risen 3.6% so far in the week.
The broader Topix fell 1.05% to 3,774.48 on Friday, but was up about 1% for the week.
The market turned cautious about the Nikkei’s sharp gains and sold chip-related stocks to book profits, said Shuji Hosoi, a senior strategist at Daiwa Securities.
Overnight, the S&P 500 and Nasdaq rose to record closing levels for a second straight session.
The US chip index rose to a record high, surging over 30% from its recent low on March 30.
In Japan, chip-making equipment maker Tokyo Electron fell 3% to drag the Nikkei lower the most.
Artificial intelligence technology investor SoftBank Group lost 3.19%. High-flying memory maker Kioxia lost 4.22% and fibre optic cable maker Fujikura lost 0.91%.
Air-conditioning maker Daikin Industries fell 2.58% after surging 9% in the previous session following a report that US-based activist investor Elliott Management pressured the company to buy back over $6 billion in shares over the next few years.
TDK rose 2.26%.
Chip-testing equipment maker Advantest gained 1.28%. Of the 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 32% rose, 64% fell and 3% traded flat.