TOKYO, May 31 (Reuters) - Japan’s Nikkei share average snapped a four-day winning streak on Wednesday, as investors sold stocks to lock in profits after the benchmark scaled a 33-year high in the previous session, while a firmer yen also weighed on equities.
TOKYO, May 31 (Reuters) - Japan’s Nikkei share average snapped a four-day winning streak on Wednesday, as investors sold stocks to lock in profits after the benchmark scaled a 33-year high in the previous session, while a firmer yen also weighed on equities.
By 0131 GMT, the Nikkei (.N225) was down 0.8% at 31,070.59,
falling from its highest level since July 1990 hit in the previous session.
The broader Topix (.TOPX) fell 0.64% to 2,145.36.
“Investors were waiting for a timing to sell stocks and the yen’s strength became a trigger,” said Jun Morita, general manager of the research department at Chibagin Asset Management.
“The pace of the buying spree by foreigners seems to be slowing down. Going forward how much more they will buy domestic shares will be a key.”
The dollar retreated overnight after Japan’s top currency diplomat said on Tuesday the nation will closely watch currency market moves and respond “appropriately” as needed.
The remarks were made after financial authorities met in response to a yen weakening to its lowest level in six months versus the dollar.
Shares of chip-testing equipment maker Advantest (6857.T) fell 1.71% to lead losses in the Nikkei. Chip-making equipment maker Tokyo Electron (8035.T) slipped nearly 1% and Uniqlo brand owner Fast Retailing (9983.T) lost 1.08%.
Toyota subsidiary Hino Motors (7205.T) surged 13% after Daimler Truck Holding AG (DTGGe.DE) and Toyota Motor (7203.T) struck a preliminary deal to combine their truck units in Japan.
Under the memorandum of understanding (MOU), the businesses of Daimler-owned Mitsubishi Fuso Truck and Bus Corp and Hino Motors would be combined under a holding company.
Shares of Toyota slipped 1.01%.
Steel makers (.ISTEL.T) lost 1.93% to become the top loser among the Tokyo Stock Exchange’s 33 industry sub-indexes. Oil and gas explorers (.IMING.T) fell 1.82%.
Of the Nikkei components, 32 stocks advanced, while 189 fell and four were flat.