Japanese Stocks Close Lower on Profit-Taking

Japanese stocks closed slightly lower on Monday, October 18th, as investors took profits after the latest rally but car makers posted gains after Toyota hinted that it may meet its full-year production target despite a lack of chips.

Investors have also been cautious as uncertainty grows over China’s economy as debt-laden property firm Evergrande struggles for its survival as the country’s GDP slowed in the third quarter.

The Nikkei Index fell 0.15% to close at 29025.46 after posting its first weekly gain in four weeks last week.

The broader Topix index lost 0.23% to close at 2019.23, but the Transportation Equipment Industry TOPIX index rose 1.86% to reach its highest level since 2015.

Toyota stock rose 2.22% after the company reduced its global production scheduled for November by up to 15% due to the continuing shortage of chips, but indicated that it would increase production from December in compliance with the latest production targets for the full year.