Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks turn lower on selling after rally


Stocks turned lower on the Tokyo Stock Exchange Wednesday, hurt by selling after the recent market advance.

The Nikkei 225 shed 60.08 points, or 0.27 percent, to end at 22,604.61. On Tuesday, it surged 291.60 points.

The Topix closed down 7.59 points, or 0.45 percent, at 1,691.32, after rising 11.30 points the previous day.

Soon after opening slightly firmer, the key indexes sank into negative territory.

The market was dragged down by declines in semiconductor-linked issues following a slump in the U.S. chip sector Tuesday, brokers said.

Wednesday’s drop came as “repurchases did not continue,” Yoshihiko Tabei, chief analyst at Naito Securities Co., said. On Tuesday, mainstay issues attracted futures-led buybacks.

Tabei suggested that selling pressure grew on the back of uncertainty over trade issues involving the United States.

Hiroaki Kuramochi, chief market analyst at Saxo Bank Securities Ltd., said that investor sentiment was hurt by a poor performance of Shanghai stocks.

Buying by investors in anticipation of exchange-traded fund purchases by the Bank of Japan failed to offset downward pressure, Kuramochi noted.

Falling issues far outnumbered rising ones 1,496 to 548 in the TSE’s first section, while 63 issues were unchanged.

Volume increased to 1.458 billion shares from 1.344 billion shares Tuesday.

Semiconductor-related Tokyo Electron, Sumco, Shin-Etsu Chemical, Disco and Screen were downbeat.

Rohm finished down 10.54 percent, with investor sentiment dampened by the electronics parts producer’s dismal sales in August, released Tuesday, brokers said.

Other major losers included air conditioner-maker Daikin Industries and drugmaker Eisai.

By contrast, SoftBank Group was upbeat after Mizuho Securities Co. raised its stock target price for the mobile phone carrier Tuesday.

Retailer FamilyMart Uny Holdings and information technology services provider NTT Data were also on the plus side.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average dropped 30 points to end at 22,620.