Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks turn down on profit-taking

JIJI

Tokyo stocks turned lower Wednesday, weighed down by a wave of selling to lock in gains.

The 225-issue Nikkei average on the Tokyo Stock Exchange dropped 200.14 points, or 0.85 percent, to end at 23,319.87. On Tuesday, the key market gauge gained 188.17 points.

The Topix index of all issues listed on the TSE first section finished down 9.34 points, or 0.55 percent, at 1,700.33, after advancing 5.64 points the previous day.

The market was pressured by profit-taking throughout the day after U.S. President Donald Trump’s address Tuesday failed to offer a fresh buying incentive regarding U.S.-China trade talks, brokers said.

Profit-taking took the upper hand due to “a sense of achievement (among investors) after the Nikkei ended above the psychologically important threshold of 23,500 on Tuesday,” said Hiroaki Kuramochi, chief market analyst at Capital Partners Securities Co.

Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co., said that the market went through a “correction” following Tuesday’s advance, which was backed by hopes for good news from the Trump address.

The market’s downside is solid and such a correction phase will be short-lived as “there are many people waiting for (the timing of) bargain-hunting,” Otsuka said.

Falling issues far outnumbered rising ones 1,606 to 479 in the TSE’s first section, while 68 issues were unchanged.

Volume inched down to 1.215 billion shares from 1.259 billion shares Tuesday.

JFE Holdings Inc. fell 5.08 percent after the steel-maker’s profit estimates for the year until March fell short of the market consensus, brokers said.

Automaker Nissan Motor Co. closed 0.50 percent lower after its consolidated operating profit forecast for the year ending in March failed to meet market expectations.

Among other major losers were clothing store chain Fast Retailing Co. and technology firm Kyocera Corp.

By contrast, Fujifilm Holdings Corp. ended 6.34 percent higher, with investor sentiment brightened by its robust operating profit for April-September and better-than-expected operating profit projection for the year through March, brokers said.

Technology investor SoftBank Group Corp. and drugmaker Takeda Pharmaceutical Co. were also on the positive side.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average sagged 250 points to end at 23,300.