TOKYO: Japan’s Nikkei share average snapped a three-day winning streak to close lower on Tuesday as a stronger yen and Wall Street’s weaker finish overnight weighed on sentiment.
The Nikkei fell 1% to close at 38,937.54, 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 around 1% lower as traders tamped down bets for Federal Reserve’s easing on interest rates and concerns over the Middle East conflict’s impact on oil prices.
The yen was a tad stronger at 148.07 per dollar, having slumped to a seven-week low of 149.10 in the previous session.
A stronger yen tends to dampen exporters’ shares, as the unit decreases the value of overseas profits in yen terms when firms repatriate them to Japan.
The broader Topix dropped 1.47% to 2,699.15, with Toyota Motor falling 2.93% to drag the index the most. Shares of Sony Group fell 2.43%.
Technology startup investor SoftBank Group slumped nearly 2% to drag the Nikkei index the most. Uniqlo brand owner Fast Retailing slipped 0.61%.
All but three of the Tokyo Stock Exchange’s 33 industry sub-indexes fell, with the brokerage sector declining 3% to become the worst performer.
Source: Brecorder
