TOKYO: Japan’s Nikkei share average inched down on Monday after its five-day winning streak, but the index recouped most of its early losses as a weaker yen eased sentiment.
The Nikkei index was down 0.04% to 38,047.17 by the midday break, after falling as much as 1% earlier in the session.
The broader Topix was down 0.05% to 2,677.23.
The Nikkei rose 8.7% last week, marking its biggest weekly rise since April 2020, amid easing concerns about the US economy and a pause in the yen’s rapid gains.
“With the Nikkei recovering to the 38,000 level, some investors felt comfortable in selling their stocks, while those who bought stocks at the bottom of this month wanted to book profits,” said Kentaro Hayashi, senior strategist at Daiwa Securities.
“The yen has been stably lower against the dollar, trading below the forecast made by local firms around 144-145,” Hayashi said.
The yen has strengthened from a 38-year low of 160 per US dollar in July to 141 yen earlier this month.
It has now has weakened back to around 148.
Japan’s Nikkei jumps 2% on return from holiday; tech shares rally
The markets were also cautious ahead of Federal Reserve Chair Jerome Powell’s speech later this week at the symposium in Jackson Hole, Wyoming, for its signal for the rate path, said Hayashi. Chip-making equipment maker Tokyo Electron slipped 0.59% to drag the Nikkei the most.
agency Recruit Holdings fell 2.21% and Uniqlo-brand owner Fast Retailing fell 0.25% The shipping sector rose 2.16% to become the top performer among the Tokyo Stock Exchange’s 33 industry sub-indexes.
Energy explorers were the worst performers, with a 1.42% decline.
Source: Brecorder
