Japan’s Nikkei declines amid profit-taking selling

Japan’s Nikkei index experienced a decline as profit-taking persisted from the previous session, with traders interpreting the Bank of Japan’s recent meeting as an indication of a continued monetary easing policy.

The Nikkei index dropped by 0.8% to 36,226 points, extending the decline from its recent peak of 36,984 points, the highest level in 34 years, recorded on January 23, 2024. This decline reversed the gains made earlier in the week.

The selling operations continued from the previous session as traders sought to secure profits following a global rise since the beginning of the year. The broader Topix index also fell by 0.51% to reach 2,529 points.

Investors are closely examining the statement from the Bank of Japan, which concluded its two-day monetary policy meeting on Tuesday, indicating its intention to maintain its ultra-loose monetary policy.

Real estate companies Mitsui Fudosan and Mitsubishi Real Estate experienced the most significant declines, losing 4.18% and 3.84%, respectively. On the other hand, the banking sector saw a notable rise of 4.2%, securing its position at the top of the sub-indices.

The technology sector’s robust performance on Wall Street positively impacted Japanese chip-related stocks, with Tokyo Electron rising by 0.62%, and Advantest experiencing a 1.24% increase.