Nikkei Dropping From Its 30-Year Peak as The Focus Shifts to Corporate Profits

Japanese stocks retreated from a 30-year peak Friday (January 22nd), as investors were reluctant to make big bets ahead of the corporate earnings season while some took profits after a recent rally led by hopes of a massive stimulus in the United States.

The Nikkei index closed down 0.44% to 28631.45 points, while the broader Topix index fell 0.21% to 1856.64. In the previous session, the index closed at its highest level in 30 years thanks to optimism that US President Joe Biden’s massive stimulus package will boost growth.

Asian stocks fell from record levels as investors pulled some money out of the market after a recent stimulus-driven rally.

Advertising agency Dentsu Group closed down 2.19% after The Times reported earlier in the session that the Japanese government had privately concluded that the Olympic Games in Tokyo would be cancelled. The government vehemently denied the report.