Japan's Nikkei falls from its record high as the market gauges fragile Mideast Peace Talks
Investors cautiously weighed the Middle East peace talks and broader geopolitical uncertainties, while Japan's Nikkei stock average fell?on Tuesday? from its record high reached?in a previous session.
The?index? recovered some of its initial losses, as memory-chip maker Kioxia reversed direction to jump nearly 7 percent ahead of an investor meeting scheduled later that day.
The Nikkei closed down by 0.3% to 66,734.24, having fallen as much as 2.2% earlier in the session. The Topix, a broader index, fell 0.42% at 3,924.24.
The Nikkei reached a record high of 67231.28 and closed at a record high of 66934.33, which is roughly 7% higher than the 25-day moving median, a sign that the market has become overheated.
Daisuke Hashizume is a senior strategist at Daiwa Securities. He said that there was caution about the sharp rise in the Nikkei, the optimism of an early end to the Middle East conflict weakened, and oil prices increased.
The status of the ceasefire talks between Iran and the U.S. is uncertain, as well as the possibility of a reopening of Strait of Hormuz.
Tasnim reported that Tehran has suspended indirect negotiations between Washington and Tehran.
Electronic components maker TDK and robotics maker Fanuc each fell 2%, dragging down the Nikkei the most.
After a choppy trading session, technology investor?SoftBank Group closed 1% higher. Fujikura, a fibre-optic cable manufacturer, narrowed the gap between its losses and fell 2.2%.
Inpex, a stock that trades in energy?stocks, rose 4.42%, following the overnight rise in oil -prices.
The Tokyo Stock Exchange ranked mining as the top performing sector, with a jump of 3.75%.
The shares of the two largest banks, Mitsubishi UFJ Financial Group and Mizuho Financial Group, rose by?0.76% each and?2.24% respectively.
Nearly 1,500 shares traded on the TSE’s prime section rose 28%, fell 69% and were flat.
(source: Reuters)
