Japan’s Nikkei index ends a 4-day winning streak amid profit-taking and yen strength

Japan’s Nikkei ended a four-day winning streak on Wednesday, with investors taking profits after the index hit a 33-year high earlier this week, and a stronger yen and disappointing Chinese data also weighed on the markets.

The Nikkei index fell 1.41 percent to 30,887.88 points, its biggest daily decline since April 5. It jumped 7% in May, its biggest monthly gain since November 2020.

The broader Topix index fell 1.32 percent to 2,130.53 points.

Asian stock markets are heading for a second consecutive monthly decline, as weak factory activity data from China provided the latest evidence of a stalled recovery in the world’s second largest economy.

Fast Retailing, which owns clothing brand Uniqlo, fell 1.08 percent, putting the biggest pressure on the Nikkei. Chipmaking equipment giant Tokyo Electron fell 2% and chip testing equipment maker Advantest 1%.

Toyota subsidiary Hino Motors jumped 12.3 percent after Daimler Trucks (ETR:MBGn) and Toyota Motor struck an initial deal to merge their truck units in Japan. Toyota shares fell 1.62 percent.