Japan Nikkei falls on profit booking

Japan shares retreated from 29-year closing high on Thursday, 10 December 2020, as profit-taking gathered steam in the wake of weak lead from Wall Street overnight after disappointment over the halting progress of economic US stimulus talks.

At closing bell, the 225-issue Nikkei Stock Average declined 61.70 points, or 0.23%, to 26,756.24. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 3.21 points, or 0.18%, to 1,776.21.

The market was ripe for taking profits following its record closing high the previous day when the Nikkei hit a 29-year high, marking its highest closing level since April 17, 1991. Meanwhile, concerns over stalled talks in the United States on its delayed stimulus package to address the economic fallout from the coronavirus pandemic, which has battered the U.S. economy, also saw investors taking profits.

Tech-related issues were dragged down by their U.S. peers losing ground overnight. Chipmaking gear maker Tokyo Electron, semiconductor test device manufacturer Advantest and other issues in the semiconductor sector were major victims to profit-taking. Shipping firms were sold for profits following recent gains, with Mitsui O.S.K Lines sinking 1.9%, while Nippon Yusen ended the day 2.1% lower. Control equipment-maker Omron and daily goods producer Kao also suffered drops.

On the other hand, SoftBank Group rocketed 10.91% and Eisai climbed 2.1%. Toyota rose 1.78%, thanks to reports that the leading automaker will release vehicles with solid-state batteries in the first half of the 2020s.

CURRENCY NEWS: The Japanese yen changed hands at 104.48 per dollar, weakening from an earlier level around 104.18.

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