Nikkei Drops Profit-Taking

Japanese stocks gave up early trade gains on Wednesday on profit-taking as US Treasury nominee Janet Yellen’s call for big spending did not come as a surprise to investors.

The Japanese Nikkei index fell 0.38% to 28,523 points, while the broader Topix index fell 0.34% to 1,849 points.

Asian stocks rose to a record high as Yellen defended a generous financial aid package to help the world’s largest economy emerge from a downturn driven by the coronavirus pandemic.

The decline curbed shares of chips and electronic components. Taiyo Yuden rose 3.92%, and Tokyo Electron gained 0.98%.

Rohm gained 1.02% and TK Corp. 0.4%.

Tokyo Electric Power rose 7.63% as wholesale electricity prices rose in Japan due to electric power providers in urgent need of supplies to meet heating demand in light of low temperatures.

120 stocks advanced on the Nikkei, compared to a decline of 101.