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Tokyo stocks continued to drop Monday, reflecting a Wall Street fall late last week and profit-taking pressure.

The 225-issue Nikkei average of the Tokyo Stock Exchange shed 276.97 points, or 0.97%, to close at 28,242.21. On Friday, the benchmark index lost 179.08 points.

The Topix index of all first section issues ended 11.12 points, or 0.60%, lower at 1,845.49, following a 16.67-point decline the previous trading day.

The Tokyo market succumbed to strong selling pressure from the outset, in response to drops in all three major U.S. stock gauges Friday, with the Nikkei giving up more than 400 points at one point in early trading.

The market, however, managed to cut some of its losses later in the morning, thanks to buying on dips and anticipation for the Bank of Japan’s purchases of exchange-traded funds, brokers said.

Both the Nikkei and Topix indexes continued to fluctuate in negative territory in the afternoon amid persistent profit-taking following the Tokyo market’s recent bull run and a dearth of fresh buying incentives.

“The market went through a much-needed speed correction,” after the Nikkei gained around 1,600 points in its recent rising streak of five sessions through Thursday last week, an official at a securities firm said.

Investors moved to sell stocks following the announcement of a closely watched novel coronavirus relief plan worth $1.9 trillion by U.S. President-elect Joe Biden last week, Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., said, adding that the announcement was viewed as “a passage of an (important) event” by market players.

Some market sources said that investor sentiment was hurt by a media report that the administration of U.S. President Donald Trump is revoking certain licenses for U.S. companies supplying components to China’s Huawei Technologies Co., such as major chipmaker Intel.

On the TSE first section, decliners overwhelmed gainers 1,195 to 888 while 106 issues were unchanged. Volume decreased to 908 million shares from Friday’s 1.249 billion shares.

Semiconductor-related issues, including chipmaking gear maker Tokyo Electron and chip test device manufacturer Advantest, fell on the back of wariness over the U.S. government’s reported action against Huawei.

Drugmaker Chugai and online brokerage house Monex also went down.

On the other hand, electric vehicle parts maker Nidec jumped 4.58%, as investors reacted positively to President Jun Seki’s reported remarks that he expects almost all drive motors installed in electric vehicles to be manufactured by companies other than automakers by around 2030.

Among other major winners were seasoning producer Ajinomoto and construction machinery-maker Kubota.

In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average shed 270 points to end at 28,190.

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