Tokyo stocks snapped their six-session winning streak on Tuesday, hit by a wave of selling to lock in profits after their recent sharp rises.
The 225-issue Nikkei average listed on the first section of the Tokyo Stock Exchange fell 87.07 points, or 0.38 percent, to end at 23,091.03, after jumping 314.37 points on Monday.
The Topix index of all TSE first section issues was down 2.29 points, or 0.14 percent, at 1,628.43. It rose 18.24 points the previous day.
Despite an overnight surge in U.S. equities, profit-taking increased after the Nikkei rose over 3,200 points between mid-May and Monday, brokers said.
The yen’s rise against the dollar chilled investor sentiment, they said.
“Domestic investors moved to take profits, with their sentiment dampened by the yen’s rise,” said Yutaka Miura, senior technical analyst at Mizuho Securities Co.
“But stocks cut some of their early losses thanks to short covering apparently by foreign investors,” he added.
Another brokerage official said, “Expectations for a U.S. economic recovery supported Tokyo stocks, but concerns over the market’s overheating grew” following the Nikkei’s first finish above 23,000 since Feb. 21 on Monday.
Falling issues outnumbered rising ones 1,219 to 853 in the TSE’s first section, while 97 issues were unchanged.
Volume decreased to 1.521 billion shares from Monday’s 1.703 billion shares.
Toyota Motor Corp., Kyocera Corp. and other export-oriented issues fell due to the yen’s rise.
Astellas Pharma Inc. dropped for the sixth consecutive session.
Among other losers were convenience store chain FamilyMart Co. and trader Mitsubishi Corp.
By contrast, Renova Inc. shot up 6.91 percent to ¥959 after Goldman Sachs Japan Co. set the target price for the renewable energy developer at ¥1,100.
Sports goods maker Asics Corp. extended its winning streak to a seventh session.
Also on the positive side were clothing store chain Fast Retailing Co. and technology investor SoftBank Group Corp.
In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average fell 80 points to end at 23,110.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.