Tokyo stocks close lower on profit-taking

Written by The Frontier Post

TOKYO (AFP/APP): Tokyo stocks closed lower Wednesday, snapping a three-day winning streak as investors sought to lock in profits after recent rallies, with falls on Wall Street also weighing on the market.
The benchmark Nikkei 225 index slid 0.52 percent, or 158.39 points, to end at 30,511.71, while the broader Topix index lost 1.06 percent, or 22.48 points, to 2,096.39.
“Profit-taking was dominant following falls of US shares and due to traders’ cautious attitude towards overheating after the Nikkei index hit a 31-year high yesterday,” Okasan Online Securities said in a note.
Wall Street shares had closed sharply lower as traders digested softer-than-expected US inflation data which seemed to cement a likely delay of the Federal Reserve’s tapering of stimulus measures.
Losses on the Nikkei index increased on Wednesday after China said growth in retail sales sank in August to a 12-month low, according to Okasan.
The dollar fetched 109.52 yen in Asian trade, against 109.66 yen in New York late Tuesday.
In Tokyo trading, SoftBank Group dropped 5.78 percent to 6,634 yen while Sony fell 1.46 percent to 12,170 yen.
Automakers were lower with Toyota slipping 0.70 percent to 9,876 yen, Honda dropping 1.82 percent to 3,382 yen and Nissan falling 1.07 percent to 572.4 yen.

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