Japan's Nikkei falls from record high as traders gauge fragile Mideast Peace Talks
Investors cautiously assessed Middle East Peace Talks, and broader geopolitical uncertainty weighed on risk appetite.
As of 0146 GMT the Nikkei was down 1.46% to 65,991.21 while the Topix fell 1.18% at 3,894.29.
The Nikkei reached a new record high of 67231.28 and a closing record of 66934.33, which is roughly 7% higher than the 25-day moving average, 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 rally of the Nikkei, the optimism over the end of the Middle East conflict weakened, and oil prices increased.
In early trade on Tuesday, oil prices remained largely unchanged from the previous session due to a lack of clarity over the status of the ceasefire talks between Iran and the United States as well as the possibility of reopening the Strait of Hormuz.
U.S. president Donald Trump stated on Monday that there were ongoing talks with Iran, whereas Tasnim reported that Tehran suspended "indirect negotiations" with Washington.
SoftBank Group, a heavyweight investor in Japan, fell 1.3%. Fujikura, a manufacturer of fibre-optic cables, fell 5.64% as a result of a broad-based sell-off in technology-related names.
Investors became cautious as they awaited a scheduled meeting with investors later in the day. Shares of memory-chip maker Kioxia erased early gains and traded 1.5% lower.
Inpex, the energy stock, rose 5.1%, tracking gains in oil prices.
Mining sector gains 4.35%, becoming the top performing sector at Tokyo Stock Exchange (TSE), while shipping firms gain 1% due to expectations of higher freight rates.
On the TSE’s prime section of nearly 1,500 shares, only 2% were flat, while 77% dropped.
(source: Reuters)
