Japan’s Nikkei declines for a second day after the rise in technology stocks lost momentum

Japan’s Nikkei index witnessed a sharp decline for the second day in a row on Thursday, as investors took profits from a recent rally in technology stocks.

The Nikkei’s losses accelerated in the second half of the session, falling 0.85 percent at the close, recording 31,641.27 points. The broader Topix index fell 0.67 percent to 2,191.50 points.

Sony Group shares fell 1.65 percent, Hoya Semiconductor Materials fell 3.89 percent, and SoftBank Group shares fell 1.47 percent.

But Esai Pharmaceuticals rose 7.37%, leading gains in Nikkei after US regulators gave a positive assessment of advanced-stage trials of the company’s Alzheimer’s treatment.

On Wednesday, the Nikkei saw its biggest drop in three months, paring a solid 15 percent gain over the past three months that outperformed other global bourses.

Of the stocks listed on the Nikkei, 147 fell and 78 rose.

The precision machinery manufacturing sector lost 2.59 percent, becoming the worst performer among the 33 sub-sectors.

As for shipping companies, they were the biggest gainers, rising 2.28 percent.