TOKYO: Japan’s Nikkei share average fell on Tuesday and seemed set to snap a three-day winning run, weighed down by Wall Street’s weaker finish overnight and a stronger yen.
The Nikkei was down 1.2% at 38,861.09 by the midday break, after rising 1.8% on Monday.
The index has jumped 4% over the last three sessions.
“Japanese stocks retreated as overnight declines of Wall Street prompted investors to book profits from their three-day rally,” said Naoki Fujiwara, senior general manager at Shinkin Asset Management.
“Also a stronger yen weighed on sentiment,” he said.
Wall Street’s three major indexes closed down around 1% as traders tamped down bets for Federal Reserve interest-rate easing and worried about the Middle East conflict’s impact on oil prices.
The yen was 0.37% higher at 147.65 per dollar in early trading, after slumping to a seven-week low of 149.10 on Monday.
A stronger yen tends to hurt exporters’ shares, as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan.
The broader Topix fell 1.55% to 2,697.01, with Toyota Motor falling 3.19% to drag the index the most. Sony Group fell 2.66%. Technology startup investor SoftBank Group fell 2.71% to drag the Nikkei the most.
Nikkei rallies on weaker yen, Wall Street gains
Chip-making equipment maker Tokyo Electron and Uniqlo brand owner Fast Retailing slipped 1.47% and 0.61%, respectively. All but three of the Tokyo Stock Exchange’s 33 industry sub-indexes fell, with the brokerage sector declining 2.86% to become the worst performer.
The banking sector lost 2.68%.
Of more than 1,600 stocks listed on the TSE’s prime market, 83% fell, while 15% rose and 1% were flat.
Source: Brecorder
