Tokyo stocks came under strong profit-taking pressure Friday, causing the benchmark Nikkei average to snap its eight-session winning streak.
The 225-issue Nikkei average of the Tokyo Stock Exchange fell 135.01 points, or 0.53%, to close at 25,385.87. On Thursday, the key index rose 171.28 points.
The Topix index of all TSE first section issues lost 23.01 points, or 1.33%, to end at 1,703.22, after shedding 2.84 points the previous day.
Selling to lock in profits took the upper hand from the outset following the Nikkei’s longest bull-run since September last year.
Stocks fell deeper into negative terrain later in the morning, forcing the key price gauge to dive over 300 points.
Sentiment was dampened by a Wall Street sell-off Thursday with all three market indicators, including the Dow Jones Industrial Average, going down in the wake of the daily coronavirus count in the United States hitting an all-time high the previous day.
The market was also weighed down by receding hopes for the U.S. government’s implementation of a fresh coronavirus relief package by the end of the year, brokers said.
Both the Nikkei and Topix indexes remained in the shady side for the rest of the Friday session despite some “buy the dip” moves.
“As expected, ‘speed adjustment’ was made to the market,” after the Nikkei climbed more than 2,500 points in the past eight market days, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
“The novel coronavirus’ resurgence not only in Europe and the United States but also in Japan has made investors highly vigilant again,” a major brokerage house official said.
On the TSE first section, decliners outnumbered gainers 1,789 to 341 with 46 issues unchanged. Volume fell slightly to 1.333 billion shares from Thursday’s 1.348 billion shares.
Idemitsu and other oil stocks took a blow from a crude oil price fall.
Airlines JAL and ANA dropped along with railways JR East and JR Tokai amid growing fears that the third wave of the virus pandemic would cause another slump in travel demand.
Advertising agency Hakuhodo plunged 7.51%, after its operating profit forecast for the year ending next March failed to beat a market consensus.
Among other major losers were Sumitomo Realty & Development and trading house Toyota Tsusho.
Nissan shot up 8.75%, as investors hailed the automaker for cutting its operating loss projection for the year to March 2021.
Clothing store chain Fast Retailing and furniture retailer Nitori also went up.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average fell 20 points to end at 25,340.
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