Nikkei Drops on Profit Taking

Stocks retreated on the Tokyo Stock Exchange Tuesday, hurt by profit-taking amid a sense of caution over precariously high prices.

The 225-issue Nikkei average ended down 92.03 points, or 0.59 percent, at 15,521.22. On Monday, the key market gauge climbed 74.06 points.

The TOPIX index of all First Section issues lost 6.3 points, or 0.49 percent, to close at 1,285.01, after rising 5.24 points the previous day.

Despite rises in U.S. and major European equities overnight, Tokyo stocks opened on a weak note, pressured by profit-taking after the Nikkei average rose for nine straight sessions through Thursday.

The Nikkei and TOPIX accelerated their downswing later in the morning as export-oriented names came under selling pressure after the dollar slipped below ¥104.

The indexes extended losses in the afternoon due to futures-led selling following poor performances of other Asian equities, brokers said.

Stock prices moved in a narrow range for the rest of the session in the absence of fresh incentives, with their downside underpinned by buying on dips, brokers said.

The yen’s appreciation triggered selling to cash in gains, but the Nikkei average did not slip below 15,500 amid persistent expectations for a further rise in stock prices, brokers said.

via Japan News

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