Japanese stocks fell for a second day as an impasse in US debt ceiling negotiations convinced some investors to take profit after benchmarks rose to their highest levels in 33 years.
(Bloomberg) — Japanese stocks fell for a second day as an impasse in US debt ceiling negotiations convinced some investors to take profit after benchmarks rose to their highest levels in 33 years.
The Topix Index fell 0.4% to 2,152.40 as of market close Tokyo time, while the Nikkei declined 0.9% to 30,682.68. Air and land transport sectors were the worst performers as Japanese travel and retail shares fell amid concerns on China’s latest Covid wave and a possible slowdown in the US economy.
Both benchmarks are down slightly more thanr 1% since climbing to levels unseen since 1990 in a rally that put Japanese equities among the world’s best performers this year. The recent gains may have been too rapid, said Mitsushige Akino, a senior executive officer at Ichiyoshi Asset Management.
Read: McCarthy, Graves Signal Impasse in White House Debt Talks
“Japanese stocks, which have been rising at a rapid pace, are prone to profit-taking when bad news emerges” such as the US debt ceiling impasse, said Shogo Maekawa, global market strategist at JPMorgan Asset Management Japan. “Once that issue calms, Japanese stocks may rise back as some overseas investors could have missed the earlier uptrend.”
Oriental Land Co. contributed the most to the Topix Index decline, decreasing 4.4%. Meanwhile, Toyota Motor rose 5.1%, after plunging 4.8% in the final minute of trading Tuesday. Out of 2,158 stocks in the index, 751 rose and 1,275 fell, while 132 were unchanged.
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