Tokyo stocks fell Thursday, weighed down by profit-taking.
The 225-issue Nikkei average on the Tokyo Stock Exchange gave up 304.55 points, or 1.06%, to close at 28,341.95, after climbing 284.33 points Wednesday.
The Topix index ended down 5.97 points, or 0.32%, at 1,865.12, following a 24.07-point advance the previous day.
The Tokyo market started out Thursday on the minus side, as selling to lock in profits took the upper hand following a three-day rising streak until Wednesday.
Supported by buying on dips, the market resisted widening its losses later in the morning. The Topix even emerged to the sunny side at one point.
Both the Nikkei and the Topix, however, fell deep into negative territory in the afternoon, pressured by drops in other Asian markets and futures for the U.S. Dow Jones industrial average in off-hours trading, brokers said.
The laggard performance of the Nikkei, which moved on the minus side throughout Thursday’s trading, compared with the Topix was due to heavy selling that hit semiconductor names, including heavyweight Nikkei components Tokyo Electron and Advantest, following a plunge in the SOX Philadelphia semiconductor index Wednesday, a strategist at a securities firm said.
“The Tokyo market’s fall in the afternoon also reflected investors’ fears over a possible Wall Street slide later on Thursday,” said Yutaka Miura, senior technical analyst at Mizuho Securities Co.
Despite descents by the key indices, rising issues outnumbered falling ones 1,116 to 984 in the TSE’s first section, while 91 issues were unchanged. Volume decreased slightly to 1.34 billion shares from Wednesday’s 1.37 billion shares.
Among issues in the semiconductor sector, Advantest tumbled 3.94%, Tokyo Electron 2.60% and TDK 2.57%.
Daily goods producer Kao plummeted 8.19% as its operating profit forecast for the year ending in December 2021 failed to beat a market consensus.
Among other major losers were job information service provider Recruit Holdings and clothing store chain Fast Retailing.
On the other hand, Sony jumped 9.54% after the entertainment giant revised up its operating profit forecast for the year ending in March.
House Foods Group and department store operator Marui Group also went up.
In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average dropped 310 points to end at 28,330.
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.