Nikkei Drops From 30-year Peak on Profit-Taking, Toyota Stocks and Chips Soar

The Nikkei index of Japanese stocks ended a four-session rise on Friday, falling from its highest level in more than 30 years, which it reached in the previous session, as investors sold shares to take profits, but gains in Toyota Motor shares and chip-related companies restrained losses.

The Nikkei index fell 0.14% to close at 29,520.07 points, after hitting a new high since August 1990 on Wednesday. The broader Topix index rose 0.04% to 1,931.68 points.

Markets were closed on Thursday for a public holiday.

Shipping companies led the decline in the Nikkei index, with Nippon Yusen losing 4.7%, Kawasaki Kisen falling 4.45%, and Mitsui OSK Lines dropping 4.67%.

Toyota Motor jumped 3.48% after the carmaker said on Wednesday after the market closed it had a four-month stockpile of chips and that it did not immediately expect a global shortage of chips to hurt production.

The company raised its full-year profit forecast by 54% more than expected.

Shares of its competitors, however, fell, with Honda Motor down 3.55% and Nissan Motor losing 3.87%.

Chip-related stocks rose after the Philadelphia Semiconductor Index hit record highs overnight, as Bloomberg News reported that US President Joe Biden’s administration has pledged to take strong steps to address the chip shortage.

Tokyo Electron and Somco shares jumped 3.67%, and Advantest rose 3.86%.

Renesas Electronics rose 3.39% after the company posted an annual net profit of 45.6 billion yen ($ 434.99 million), rebounding from a loss of 6.3 billion a year ago.