Nikkei Drops Below 15,000 After Strong JPY and Profit Taking

Stocks turned lower on the Tokyo Stock Exchange Tuesday, pressured by profit-taking after a surge on Monday, with the benchmark Nikkei average falling back below 15,000.

The 225-issue Nikkei average lost 306.95 points, or 2.03 percent, to end at 14,804.28. On Monday, the key market gauge jumped 578.72 points, marking its sharpest rise since June 10 last year.

The TOPIX index of all First Section issues shed 18.98 points, or 1.55 percent, to close at 1,205.36. It surged 47.12 points the previous day, also the sharpest rise since June 10 last year.

After opening slightly higher on an overnight rise in U.S. stocks, Tokyo stocks came under selling pressure amid a fall in the dollar below ¥107. In addition, a wait-and-see mood was strong ahead of the releases of key Chinese economic data.

Stocks extended their losses toward the close, led by index futures trading, with the Nikkei average briefly falling nearly 350 points, as mainstay issues met with further selling, brokers said.

Falling issues outnumbered rising ones 1,574 to 209 on the TSE’s First Section, while 50 issues were unchanged.

Volume fell to 2.26 billion shares from Monday’s 2.38 billion shares.

via Japan News

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza