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Tokyo stocks close lower on profit-taking
TOKYO, June 14, 2018 (BSS/AFP) – Tokyo stocks fell on Thursday as
investors locked in profits following a three-day rally, with a strong yen
weighing on the market.
The benchmark Nikkei 225 index lost 0.99 percent or 227.77 points to close
at 22,738.61 while the broader Topix index was down 0.92 percent or 16.48
points at 1,783.89.
“Investors cashed in as prices have been rising recently,” said Hikaru
Sato, senior technical analyst at Daiwa Securities.
“When the Nikkei approaches 23,000, selling pressure often emerges,” Sato
told AFP.
The dollar fell against the yen in Asian afternoon trade, changing hands
at 109.99 yen against 110.38 yen in New York late Wednesday.
Investors have digested Wednesday’s decision by the US Federal Reserve to
lift rates as it signalled a more aggressive pace for additional hikes.
“The latest US rate hike has already been factored in by the market which
had sent the dollar higher against the yen since May, supporting Japanese
shares,” Masayuki Kubota, chief strategist at Rakuten Securities, said in a
commentary.
“As the dollar is not really appreciating despite the rate hike, the
Nikkei 225 is seen falling,” he said.
In Tokyo, pharmaceuticals were among losers, with Takeda declining 0.66
percent to 4,338 yen and Daiichi Sankyo down 0.41 percent at 3,866 yen.
Sony plunged 2.07 percent to 5,387 yen while Toyota was down 0.89 percent
at 7,429 yen.
Banks were mixed as Mitsubishi UFJ dropped 0.96 percent to 670 yen but
Sumitomo Mitsui Financial rose 0.35 percent at 4,569 yen.
Tokyo Electric Power Company Holdings lost 0.77 percent to 514 yen after
the utility said it was considering decommissioning all nuclear power plants
in Fukushima.
On Wednesday, Wall Street stocks finished lower, with the Dow closing down
0.5 percent at 25,201.20.
BSS/AFP/HR/1300