Nikkei retreats from record high amid profit-taking
(MENAFN) Japan's NIKKEI index retreated from its recent record high during trading as investors opted to take profits following a sustained rally in stock prices over several days. The Nikkei average reached an intraday peak of 41,112.24 in volatile trading but closed down 0.32 percent at 40,780.70. Similarly, the broader Topix index also declined, falling by 0.57 percent to 2,867.61.
Initially buoyed by a strong performance on Wall Street, where main indexes surged on Friday due to weaker-than-expected U.S. jobs data, market sentiment in Japan was optimistic about potential interest rate cuts as early as September. Some Japanese technology stocks mirrored gains seen in their U.S. counterparts, providing support to the Nikkei.
However, as profit-taking became prevalent, investors moved to capitalize on recent gains. Japanese stock indexes had seen a remarkable upward trend, marking five consecutive days of gains and achieving record highs in the previous week's trading sessions. Of the 225 stocks listed on the Nikkei, only 53 recorded gains, while 171 saw declines.
Yaskawa Electric Co., a notable electrical equipment maker, saw its shares drop by 4.4 percent, reflecting disappointing earnings results and positioning it among the day's worst performers. Meanwhile, Tokyo Electron, a major manufacturer of chipmaking equipment, experienced a 0.9 percent decline.
In contrast, SoftBank Group Corp. saw a 0.4 percent rise after shares of British chip designer Arm Inc., in which SoftBank holds a 90 percent stake, reached an all-time high on U.S. markets. Shares of Fast Retailing, the parent company of popular clothing brand Uniqlo, also saw a modest increase of 0.4 percent amidst the day's mixed trading dynamics.
MENAFN09072024000045015682ID1108421165
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.