Economy 2 MIN READ

Japan’s Nikkei falls as investors lock in profits, Fast Retailing drags

July 5, 2023By Reuters

Japan’s Nikkei share average fell on Wednesday as investors booked profits after a recent rally and due to a decline in Fast Retailing’s shares after the Uniqlo brand owner posted a drop in monthly sales.

The Nikkei index .N225 pared early losses to trade 0.36% lower at 33,303.00 by the midday break. The index fell as much as 1% earlier in the session.

The broader Topix .TOPX edged down 0.08% to 2,304.59.

“Investors tried to lock in profits after a sharp rally,” said Ikuo Mitsui, fund manager at Aizawa Securities.

“Recently, the Nikkei has tended to pare losses because there are still many investors who want to increase their positions in Japanese stocks and they buy shares on dips, which cuts some losses or even helps the index reverse course.”

Fast Retailing 9983.T fell 2.98%, the most on the Nikkei, after it reported a 3.4% decline in same-store sales for June.

Chip-making equipment maker Tokyo Electron 8035.T fell 0.44% and medical equipment maker Terumo 4543.T lost 1.26%.

Shipping firm Kawasaki Kisen Kaisha 9107.T surged 5.61% to the top of the Nikkei. The shipping sector’s .ISHIP.T 3% gain was the most among the 33 industry sub-indexes on the Tokyo Stock Exchange.

Daiichi Sankyo 4568.T rose 5.31% after tanking nearly 15% in the previous session. The pharmaceutical sector .IPHAM.T rose 1.5%, with Sumitomo Pharma 4506.T jumping 3.06%.

Of the Nikkei’s components, 93 stocks rose and 131 declined, with one being flat.

(Reporting by Junko Fujita; Editing by Savio D’Souza)


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