Tokyo Stocks Break 4 Day Winning Streak After Profit Taking

Tokyo stocks retreated Monday, snapping a four-day winning streak, as investors locked in gains from steady rises over the past several days.

The 225-issue Nikkei Stock Average ended down 103.46 points, or 0.61 percent, from Friday at 16,911.32. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 13.45 points, or 0.98 percent, lower at 1,361.90.

Decliners were led by insurance, and electric power and gas issues.

Tokyo stocks remained in negative territory throughout the day as investors locked in recent gains after the key Nikkei index rose almost 1,000 points in the past four trading days, analysts said.

“Overall, the Tokyo market is calmer and the excessive risk-off mood is receding,” Shingo Ide, chief equity strategist at the NLI Research Institute, said, adding that ebbing concerns about a potential U.S. recession have been helping Tokyo shares to stabilize.

Ide also said the latest snapshot of the U.S. labor market underpinned investor sentiment. The Labor Department data showed Friday that the number of jobs added last month was far larger than expected.

via Mainichi

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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