Tokyo stocks down on profit-taking after Macron rally

 09 May 2017 - 9:54

Tokyo stocks down on profit-taking after Macron rally
File Photo.

AFP

Tokyo: Tokyo stocks closed lower Tuesday as investors booked profits a day after pro-European centrist Emmanuel Macron's victory in the French presidential election pushed the Japanese market to a 17-month high.

The decline after three days of gains came on the back of a slide in European stock markets with investors looking beyond Macron's win to focus on whether he will be able to push through economic reforms.

"Profit-taking is leading the market after a sharp rally over a short period of time," Okasan Online Securities chief strategist Yoshihiro Ito said in a commentary.

The benchmark Nikkei 225 index fell 0.26 percent, or 52.70 points, to 19,843.00 after closing Monday at its highest level since December 2015.

The Topix index of all first-section issues lost 0.26 percent, or 4.09 points, to end the day at 1,581.77.

This week, hundreds of Japanese firms release their financial results with Toyota and mobile carrier SoftBank due to publish earnings on Wednesday.

On Tuesday, Toshiba's volatile shares jumped 4.52 percent to 251.7 yen after news reports said the troubled industrial conglomerate, which is grappling with massive losses, may release unaudited annual results to avoid being delisted from the Tokyo bourse.

Sony added 0.87 percent to close at 4,024 yen, crossing the 4,000 level for the first time since 2008. The company is in the midst of a years-long restructuring to move past losses largely tied to a struggling television business.

Canon rose 1.39 percent to 3,847 yen while automakers fell, with Toyota slipping 1.60 percent to 6,135 yen and Nissan falling 0.55 percent to 1,079 yen.

The dollar was changing hands at 113.34 yen from 113.26 yen in New York and 112.72 yen in Asia earlier Monday.