Tokyo stocks went down for the third straight day Friday as an overnight decline in U.S. stocks accelerated profit-taking selling.
The 225-issue Nikkei average sank 218.17 points, or 0.72%, to close at 30,017.92. The benchmark index fell 56.10 points on Thursday.
The Topix index of all first section issues ended 12.96 points, or 0.67%, lower at 1,928.95 after sliding 19.58 points the day before.
The fall of all three major U.S. stock market indicators, including the Dow Jones Industrial Average, pulled Tokyo stocks down from the opening bell.
The appreciation of the yen against the dollar also spurred selling, especially for exporters.
Investors took to position-squaring selling and profit-locking ahead of the weekend, brokers said.
A slide in U.S. stock futures in off-hours trading fueled the selling, adding downward pressure on the market in late morning and in the afternoon.
“Technical indicators are no longer showing signs of market overvaluation,” Maki Sawada, strategist at Nomura Securities Co., noted. “Factors related to the day being a Friday are behind the decline.”
“Some investors have yet to catch up to the recent bull run, so we are continuing to see buying on dips propping up the market,” Hirohumi Yamamoto, strategist at Toyo Securities Co., said.
Falling issues outnumbered rising ones 1,521 to 590 in the TSE’s first section, while 83 issues were unchanged. Volume sank to 1.223 billion shares from Thursday’s 1.579 billion shares.
Fast Retailing, the operator of the Uniqlo casual clothing chain, dropped 2.42% after surging against the market’s overall down trend the day before.
Online brokerage Monex Group plummeted 10.35% following a decline in Bitcoin prices.
Exporters such as Honda Motor also succumbed to selling.
On the other hand, semiconductor names attracted buying after Applied Materials, the world’s biggest chipmaking gear-maker, released overnight quarterly earnings that beat market expectations. Chip test device manufacturer Advantest gained 3.27%.
Other winners included internet advertising firm CyberAgent and mobile phone carrier KDDI.
In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average lost 190 points to end at 30,040.
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