Nikkei Retreats from 34-Year Peak Amid Profit-Taking

The Nikkei index in Japan experienced a mild retreat at Friday’s close, stepping back from its highest level in 34 years as investors opted to cash in on gains. Here’s a breakdown of the key movements and factors influencing the market:

Nikkei’s Modest Gain and Intraday High

• The Nikkei edged up by 0.09 percent to reach 36,897.42 points by the close of trading. However, earlier in the session, it had surged by as much as 1.15 percent, hitting a peak of 37,282.26 points. This marked the index’s highest level since February 1990.
• Shuji Hosui, chief analyst at Daiwa Securities, noted that investors took the opportunity to sell stocks as the Nikkei approached the psychologically significant 37,000-point mark. The rapid pace of gains prompted profit-taking activities.

Performance of Key Stocks

• SoftBank Group shares witnessed a notable jump of 8.72 percent, extending gains for the second consecutive session. The technology investment company returned to profitability for the first time in five quarters, boosting investor confidence.
• Conversely, Fast Retailing, the owner of the popular Uniqlo brand, saw its shares dip by 0.92 percent, exerting downward pressure on the index.

Broader Market Trends

• The broader Topix index relinquished its early gains, slipping by 0.19 percent to settle at 2,557.88 points. This downturn was partly influenced by a 0.81 percent decline in Toyota Motor shares.
• Nissan Motor shares plummeted by 11.56 percent following the company’s downward revision of sales volume expectations for the current fiscal year. Concerns over its business outlook in China further contributed to the negative sentiment.

Market Overview

• Among the 225 stocks listed on the Nikkei, 87 registered gains while 136 recorded declines, with two stocks maintaining stability.

As market participants navigate through profit-taking activities and respond to corporate earnings reports, the Nikkei’s trajectory reflects a delicate balance between bullish momentum and cautious sentiment.