Japanese Shares Retreat on Profit Taking

The Nikkei 225 Index fell 0.6% to below 72,000, while the broader Topix Index declined 0.5% to 7,073 on Tuesday, with both benchmarks pulling back from record highs as investors took profits following a strong rally in semiconductor and artificial intelligence-related stocks. Japanese equities also mirrored overnight weakness on Wall Street, where major US technology stocks came under pressure. Meanwhile, investors drew encouragement from signs of progress in ongoing US-Iran negotiations after Washington granted Tehran a 60-day license to sell oil on international markets, fueling expectations of a faster recovery in global supply. Among individual movers, SoftBank Group dropped 5.8%, JX Advanced Metals fell 3.1%, Furukawa Electric lost 4.6%, Taiyo Yuden declined 1.7%, and Murata Manufacturing slipped 3.9%.

The Nikkei 225 Index went up by 1128 points or 1.58 percent on Monday to close at 72379 points. The rise was led by J Front Retailing (15.56%), Toppan (10.87%) and Toto (10.82%).

The Nikkei 225 Index jumped 1.55% to close at 72,354, while the broader Topix Index gained 1.24% to 4,095 on Monday, with both benchmarks reaching new record highs as Japanese firms tied to the global artificial intelligence infrastructure boom continued to lead the market higher. Domestic equities also advanced as oil prices declined further after Washington and Tehran agreed on a roadmap to reaching a final deal in 60 days, allaying market fears after both sides exchanged renewed threats over hostilities in Lebanon. Meanwhile, investors awaited the latest Japanese PMI data for clues on economic conditions, along with the Bank of Japan’s Summary of Opinions from its June meeting, where policymakers raised interest rates by 25 basis points to 1%. Among notable gainers, Furukawa Electric jumped 8.7%, Murata Manufacturing rose 4.3%, JX Advanced Metals gained 12.4%, Ibiden advanced 7.6%, and SoftBank Group added 1.9%.