Japanese Stocks Weaken, Profit-Taking Pressures Market
Japanese stocks closed lower on Tuesday after investors took profits following the previous day's strong rally. The Topix index fell 0.5% to 3,122.12, while the Nikkei weakened 0.4% to 43,459.29. Earlier in the session, the Topix had risen as much as 0.8% to 3,162.33.
The banking sector was the main drag on the Topix as expectations for interest rate hikes faded. This was triggered by the emergence of Sanae Takaichi—a supporter of fiscal expansion—as a strong candidate to replace Prime Minister Shigeru Ishiba, who has announced his resignation. Analysts believe buying interest from investors who missed out on the previous rally has subsided, leaving the market primarily affected by profit-taking.
SoftBank Group was the biggest drag, falling 4.3%. Of the 1,676 stocks on the Topix, 643 rose, 979 fell, and 54 were unchanged. Meanwhile, chip-related stocks are back in demand thanks to solid performance, supporting several exporting companies.
Meanwhile, Shift Inc. shares surged 5.8% after being announced as being included in the Nikkei 225 index starting October 1, replacing Citizen Watch Co., which plummeted 6.8%. This change has drawn additional attention amidst the dynamic political landscape in Japan, which could potentially influence the direction of economic policy. (ayu)
Source: Bloomberg
