Japan's Nikkei slips from record high, investors weigh Wall Street lull

Economic Times

17 hours ago

Japan's Nikkei share average slipped from a record high to end lower on Tuesday, as investors weighed Wall Street's muted overnight finish, raising concerns that markets have advanced too far, too fast.
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Japan's Nikkei share average slipped from a record high to end lower on Tuesday, as investors weighed Wall Street's muted overnight finish, raising concerns that markets have advanced too far, too fast.The Nikkei index closed 0.38% lower at 43,546.29, after rising to a record high of 43,876.42 earlier in the session.The broader Topix also gave up early gains to end 0.14% lower at 3,116.63."Caution about the fast-pitched rally prompted investors to book profits," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities."Sentiment is strong so if the market sees any positive cues, the momentum will be back," he said.Wall Street's main indexes closed roughly flat on Monday, after struggling for direction as investors awaited the Federal Reserve's annual symposium in Jackson Hole.Investors will monitor the conference, held from August 21-23, where Chair Jerome Powell is expected to speak. It could offer more clarity on the U.S. economic outlook and the Fed's policy framework.Central bank s' policies will be key for the Nikkei in the coming sessions as there are expectations that the Bank of Japan may raise interest rates at its September policy meeting, said Takamasa Ikeda, a senior portfolio manager at GCI Asset Management.SoftBank Group reversed early gains to end 4% lower on Tuesday, becoming the biggest drag for the Nikkei, following news that the Japanese technology investor is taking a $2 billion equity stake in Intel.SoftBank shares have surged 36% so far this month, far outpacing the Nikkei's 9.2% gain.Uniqlo-brand owner Fast Retailing slipped 1.26%.Bucking the trend, chip-making equipment maker Tokyo Electron rose 0.83%. Drugmaker Chugai Pharmaceutical jumped 4.46%, providing the biggest boost to the Nikkei.