Japan’s Nikkei turns lower under pressure from a wave of selling in value stocks

Japan’s Nikkei index closed lower on Wednesday, giving up the gains it achieved earlier in the session amid a wave of selling value stocks, but gains in growth stocks limited losses.

The Nikkei ended trading down 0.33 percent, recording 32,166.48 points, after opening with an increase of 0.75 percent.

The wave of profit-taking selling came after the Nikkei rose more than six percent in four consecutive sessions through Monday.

Oil refineries lost 6.11 percent, becoming the worst performers among the Tokyo Stock Exchange’s 33 sub-sectors. Ineos Holdings shares fell 6.85 percent.

The energy exploration companies sector fell 5.29 percent. The banking index, which is also a measure of the performance of value stocks, lost 4.75 percent.

The broader Topix index fell 1.16 percent to 2,305.95 points, with Mitsubishi UFJ Financial Group shares losing 4.17 percent.

But Fast Retailing, which owns the Uniqlo brand, which is among the growth stocks, increased 1.22 percent, which was the biggest support for the Nikkei index, and Advantest, a maker of chip testing equipment, rose 1.93 percent.

Nintendo shares jumped 6.09 percent after the electronic gaming company raised its operating profit forecast by 11 percent for the fiscal year that ends in March.

Mazda Motor shares increased 10.39 percent after the company raised its forecast for annual operating profits thanks to the weak yen.