Japan's Nikkei ends lower as investors gauge corporate earnings
ADVERTISEMENT The broader Topix slipped 0.72% to 2,930.73.
"Investors sold stocks to book profits from a recent rally; that's a short answer to today's declines," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.
"But they sold stocks because the shares jumped last week, and were concerned that corporate earnings may not justify the current level of the equities."
Last week, the Nikkei climbed to a one-year high after Japan and the United States struck a deal to lower the hefty tariffs U.S. President Donald Trump threatened to impose on goods from Japan.
Chip-related shares led the declines, with Advantest tanking 8.96% to become the biggest drag in the Nikkei.
ADVERTISEMENT Screen Holdings lost 9.74% to become the top percentage loser in the Nikkei, after the chip-making equipment maker reported a 12.2% decline in its latest quarterly operating profit.
The banking sector fell 2.86% to become the worst performer among the Tokyo Stock Exchange's 33 industry sub-indexes.
ADVERTISEMENT Bucking the trend, Fanuc jumped 5% to become the top percentage gainer in the Nikkei, after the robot maker's latest quarterly operating profit jumped nearly 30%. The company also said that its forecast factored in the 15% U.S. tariff set to take effect on August 1. Of the more than 1,600 stocks trading on the TSE's prime section, 42% rose and 52% fell, with 4% trading flat.
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