Japan's Nikkei Retreats from Record High as Profits Taken

Japan's Nikkei Retreats from Record High as Profits Taken

Japan's Nikkei share average edged down on Tuesday, retreating from a record high in the previous session, as investors locked in profits and the rise in oil prices weighed on sentiment.

The Nikkei 225 had jumped 2.87% to close at 65,158.19 on the previous day on AI-optimism bets, gaining 8.95% over the past three sessions in its steepest three-day gain in more than six years.

"The market has turned to the risk-on mode, but investors sold stocks to book profits from the sharp rally," said Daisuke Hashizume, senior strategist at Daiwa Securities. "Optimism over a U.S.-Iran peace deal has already been priced in, and gains in oil prices weighed on sentiment," he added.

Chip-related heavyweights fell, with Advantest down 5% and Tokyo Electron down 2.26%. Memory maker Kioxia slipped 5.45% and fibre optic cable maker Fujikura lost 3.7%. Bucking the trend, SoftBank Group jumped 7.36% to become the biggest support for the Nikkei. Heavy machinery makers rose, with Kawasaki Heavy Industries and IHI rising nearly 8% each.

Of all the shares traded on the Tokyo Stock Exchange's prime market, 50% rose and 45% fell, while 3% traded flat.