Japan Shares Close Lower on Profit-Taking

Japanese shares closed lower on Monday, as investors booked profits after a recent rally, but losses were limited thanks to a positive conclusion from domestic drug makers.

The Nikkei index lost 0.99% to record 28,860.08 points at the close, while the broader Topix index fell 1.26% to 1922.98 points.

The Nikkei jumped 2.1% on Friday to close at the level of 29,000 points for the first time since the tenth of May, while the US market achieved limited gains.

Japan started its vaccination program in mid-February, later than most major economies, and is racing to vaccinate most elderly people ahead of the July 23 Olympic Games in Tokyo.

The Nikkei was negatively affected by heavyweights such as Fast Retail and SoftBank Group, which fell 0.73% and 1.57%, respectively.

Renesas Electronics plunged 5.51% after the chipmaker announced it had sold nearly $ 2 billion of shares to fund a planned deal to buy a dialog semiconductor for $ 6 billion.

On the other hand, drug makers’ shares advanced, with Astellas Pharma jumping 2.1% and Chugai Pharmaceutical Industries 0.45%.

Astellas shares were the highest gainer over the Nikkei in percentage terms, followed by Advantest, with an increase of 2.06%, and Yaskawa Electric, with gains of 1.34%.