Japan Shares Close Lower on Profit-Taking

Japanese stocks closed lower for the second consecutive session on Thursday, as investors continued to book profits after the recent rally boosted by hopes of new political leadership.

The Nikkei index fell 0.62 percent to close at 30,323.34 points, after rising about 0.36 percent earlier in the session. The broader Topix index fell 0.3 percent to 2,090.16 points.

Japanese stocks have risen since Sept. 3, when Prime Minister Yoshihide Suga announced his intention to step down, raising expectations of fresh economic stimulus under the new leadership.

“Internal political developments pushed Japanese stocks higher, but this momentum was temporarily halted after Japanese stocks outperformed US stocks in recent gains,” said Takatoshi Itoshima, an analyst at Pictet Asset Management.

Shipping companies led the losses, declining 1.61 percent, while real estate companies fell 1.54 percent. Glass, ceramics, and copper companies fell 1.51 percent.

Technology heavyweights were the biggest losers on the Nikkei index, as Tokyo Electron fell 3.05 percent, and SoftBank Group lost 1.39%.

On the other hand, energy stocks tracked the gains made by their US counterparts overnight after the rise in crude oil prices. Shares of refiners rose 2.14 percent, and shares of oil exploration companies rose 1.8 percent.