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Nikkei eases off 29-1/2-year high on profit-taking

Published 07/12/2020, 07:34
Updated 07/12/2020, 07:36
© Reuters.

© Reuters.

TOKYO, Dec 7 (Reuters) - Japan shares closed lower on
Monday, with the Nikkei pulling back from a more than
29-1/2-year high, as five straight weeks of gains raised some
concerns of an overheating market and spurred investors to book
profits.
The Nikkei index .N225 fell 0.76% to 26,547.44, after
hitting its highest level since April 1991 at the open. The
broader Topix .TOPX lost 0.86% to 1,760.75.
Tokyo stocks initially tracked positive cues from Wall
Street's Friday session before reversing course on
profit-taking.
Major U.S. stock indexes rose to all-time highs last week as
downbeat U.S. jobs data raised expectations for a new fiscal
relief bill. .N
Back home, Prime Minister Yoshihide Suga said he would
decide on an economic stimulus package early this week, adding
that green and digital initiatives would be core to the recovery
from the coronavirus pandemic. Local stocks have been prone to profit-booking due to
persistent concerns of an overheating market, some market
participants said.
Other headwinds for the market included rising coronavirus
cases in Japan and falls in U.S. stock futures on the back of
growing concerns over tensions between China and the United
States.
Reuters exclusively reported, citing sources, that the
United States was preparing sanctions on Chinese officials over
their alleged role in Beijing's disqualification of elected
opposition legislators in Hong Kong. Among the Topix 30 underperformers, Shin-Etsu Chemical Co
Ltd 4063.T fell 2.62% and Nidec Corp 6594.T lost 2.22%.
The top percentage losers in the index were Olympus Corp
7733.T , ANA Holdings 9202.T and Kawasaki Kisen Kaisha
9107.T , falling between 5.06% and 5.32%.
Semiconductor stocks tracked their U.S. peers higher, with
Advantest 6857.T edging 0.54% higher and Tokyo Electron
8035.T adding 1.4%.
Dentsu Group Inc 4324.T rose as much as 1.13% before
closing down nearly 0.6%, after the Japanese advertising giant
said it was expecting a smaller net loss for the year ending in
December compared to the prior year.

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