Nikkei gives up most of its gains after profit-taking

Japan’s Nikkei index rose slightly at the close on Tuesday, snapping losses for five consecutive sessions, but gave up most of its early gains as investors sold shares to take profits.

The Nikkei index rose 0.04 percent to 32,203.57 points at the close, while the broader Topix index reversed its course and fell 0.31 percent to 2,236.40 points at the close.

“Investors sold shares after the Nikkei index rose, while the yen’s rise was a negative factor,” said Seichi Suzuki, senior stock market analyst at the Tokai Institute, Tokyo.

The Nikkei index rose after the end of selling in exchange-traded funds in a move aimed at distributing profits, which market participants valued at more than one trillion yen ($ 7.10 billion).

“Some investors bought those shares and sold them as soon as the Nikkei rose,” Suzuki added.

He stated that the rise of the yen against the dollar prompted investors to sell stocks.

On Tuesday, the yen rose above 141 against the dollar for the first time in almost a month after Federal Reserve officials indicated that the Fed was nearing the end of its monetary tightening cycle.