Japan's Nikkei trades lower after five straight sessions of gains

Recruit Holdings

19/08/2024 04:12

(Updates with levels as of 0200 GMT)
       TOKYO, Aug 19 (Reuters) - Japan's Nikkei share average
inched down on Monday after its five-day winning streak, but the
index recouped most of its early losses as a weaker yen eased
sentiment.
    The Nikkei index  .N225  was down 0.04% to 38,047.17 by the
midday break, after falling as much as 1% earlier in the
session. 
        The broader Topix  .TOP  was down 0.05% to 2,677.23.
    The Nikkei rose 8.7% last week, marking its biggest weekly
rise since April 2020, amid easing concerns about the U.S.
economy and a pause in the yen's rapid gains.
    "With the Nikkei recovering to the 38,000 level, some
investors felt comfortable in selling their stocks, while those
who bought stocks at the bottom of this month wanted to book
profits," said Kentaro Hayashi, senior strategist at Daiwa
Securities.  
    "The yen has been stably lower against the dollar, trading
below the forecast made by local firms around 144-145," Hayashi
said.
    The yen  JPY=EBS  has strengthened from a 38-year low of 160
per U.S. dollar in July to 141 yen earlier this month. It has
now has weakened back to around 148. 
        The markets were also cautious ahead of Federal Reserve
Chair Jerome Powell's speech later this week at the symposium in
Jackson Hole, Wyoming, for its signal for the rate path, said
Hayashi. 
  
        Chip-making equipment maker Tokyo Electron  8035.T 
slipped 0.59% to drag the Nikkei the most. Staffing agency
Recruit Holdings  6098.T  fell 2.21% and Uniqlo-brand owner Fast
Retailing  9983.T  fell 0.25% 
        The shipping sector  .ISHIP.T  rose 2.16% to become the
top performer among the Tokyo Stock Exchange's 33 industry
sub-indexes. 
        Energy explorers  .IMING.T  were the worst performers,
with a 1.42% decline.
  
    

 (Reporting by Junko Fujita; Editing by Christian Schmollinger
and Janane Venkatraman)
 ((junko.fujita@thomsonreuters.com;))