TOKYO: Japan’s Nikkei share average fell 1% on Wednesday, tracking Wall Street’s weak performance overnight, while investors also booked profits after a sharp rally last week.
The Nikkei was down 1.08% to 38,949.62, as of 0217 GMT, while the broader Topix slipped 0.95% to 2,715.35.
Wall Street’s three major indexes closed lower on Tuesday, as investors booked some profits from a post-election rally and waited anxiously for US inflation data due this week.
“Investors were not convinced that the Nikkei would hit 40,000 again anytime soon, so they sold stocks as the index neared that level,” said Fumio Matsumoto, chief strategist at Okasan Securities.
“For the index to rise further, we need to see more appetite from foreigners.” The Nikkei hit its highest level since Oct. 15 last week and posted its biggest weekly gain since September.
Uniqlo-brand owner Fast Retailing slipped 1.46% on Wednesday to drag the Nikkei the most. Staffing agency Recruit Holdings lost 3.35%.
SoftBank Group gave up its early gains to fall 0.84%.
The technology start-up investor rose at the open after reporting a 1.18 trillion yen ($7.63 billion) net profit for the three months to September. Nissan Motor slipped 0.26%, following a 13% surge in the previous session.
Japan’s Nikkei rises on weak yen and domestic earnings
A filing showed on Tuesday activist investor Effissimo Capital Management had taken a stake in the struggling Japanese automaker.
Game maker Nexon tanked 14% to become the top percentage loser on the Nikkei after cutting its annual net profit forecast for the year to December.
Tokyo Electron rose 3% to become the biggest support for the Nikkei, as the chip-making equipment maker raised its annual operating profit forecast by 8.5%.
Sharp surged 12.84% to become the top gainer on the Nikkei after the mobile phone maker more than quadrupled its half-yearly net profit.
Source: Brecorder
