Japanese Stocks Fall After Rally, Investors Begin to Take Profits
Japanese stocks weakened on Thursday (May 14) after a strong rally pushed the index to a record, triggering profit-taking. The Nikkei 225 fell 0.98% to close at 62,654, while the Topix fell 0.95% to 3,882, marking a pause in consolidation after earlier gains.
At the issuer level, SoftBank Group fell 4.3% despite posting a jump in quarterly profit driven by a valuation increase related to its investment in OpenAI. Fujikura plunged 19.1% despite posting double-digit growth in sales and profit, indicating the market is more sensitive to expectations and valuations after the rally, rather than simply headline performance.
Pressure also came from a number of cyclical and material stocks. Mitsui Kinzoku fell 7.9% after delivering a weaker FY2027 profit outlook despite forecasting higher revenue. Declines were also seen in Kioxia Holdings (-4.6%), JX Advanced Metals (-4.7%), Mitsubishi Heavy Industries (-5.7%), Sumitomo Electric (-5.1%), and Sony Group (-5.3%), adding to the pressure on the index.
From a macro-sentiment perspective, the market continues to monitor the meeting between US President Donald Trump and Chinese President Xi Jinping amid hopes of improved relations, although tariff disputes and other issues continue. In the near term, investor focus will likely be on whether geopolitical catalysts and trade policies can stem the risk rotation, and whether this correction will lead to a deeper valuation adjustment or simply a pullback after a rally. (asd)
Source: Newsmaker.id
