Tokyo stocks drop as gains locked in following record highs

The Mainichi

3 days ago

TOKYO (Kyodo) -- Tokyo stocks dropped Thursday morning as investors locked in gains after the Nikkei benchmark ended at an all-time high for a second consecutive day.
The 225-issue Nikkei Stock Average fell 548.04 points, or 1.27 percent, from Wednesday to 42,726.63. The broader Topix index was down 31.87 points, or 1.03 percent, at 3,060.04.
The U.S. dollar briefly weakened to the lower 146 yen zone in Tokyo as speculation about an interest rate hike by the Bank of Japan grew after U.S. Treasury Secretary Scott Bessent said in an interview that Japan is falling behind the curve in addressing inflation, dealers said.
At noon, the dollar fetched 146.69-70 yen compared with 147.33-43 yen in New York and 147.52-54 yen in Tokyo at 5 p.m. Wednesday.
The euro was quoted at $1.1704-1706 and 171.69-73 yen against $1.1699-1709 and 172.42-52 yen in New York and $1.1707-1708 and 172.71-75 yen in Tokyo late Wednesday afternoon.
Stocks were sold as investors grew concerned about the market overheating after the Nikkei index gained nearly 3,000 points over the past six trading days and ended above the 43,000 mark for the first time on Wednesday, brokers said.
The market was also weighed down by export-related shares on a stronger yen, which decreases exporters' overseas profits when repatriated.