2024-03-25 03:58:24
The Nikkei Japanese stock average fell slightly on Monday due to profit-taking following decisions taken last week by central banks.
The Nikkei was down 0.65% at 40,621.24 at midday, with only 56 of the index’s 225 components advancing compared to 167 declining.
The index is poised to end a four-day streak of gains following breaching the 41,000 level for the first time on Friday and hitting a record closing high of 40,888.43.
The broader Topix index was down 0.8% at 2,790.78 on Monday.
Shares of Japanese companies with larger overseas sales, which benefit from a weaker yen, fell as the currency held at the psychologically significant level of 151 to the dollar.
“It’s hard to see the yen going down to something like 160 to the dollar, which is huge,” said Hiroshi Namioka, chief strategist at T&D Asset Management.
Automakers fell, with Toyota Motor losing 0.5% and Mazda Motor falling 1.4%.
The Sony group fell 2.3%.
The Nikkei benefited from support from the yen, which fell to 151.86 per dollar, as the Bank of Japan made a historic shift by abandoning negative rates last week.
However, losses were widespread, with many index heavyweights falling on Monday following profit-taking. Chipmaking equipment giant Tokyo Electron lost 0.6% and recruitment agency Recruit Holdings fell 2.6%.
The market is experiencing a pause in momentum following such a significant rise, and technical factors are likely to weigh on the index this week, Mr. Namioka added.
Wall Street also took a break on Friday following record highs, which weighed on the mood of traders in Japan on Monday. (Reporting by Brigid Riley; Editing by Shounak Dasgupta)
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