Japan`s Nikkei down for third straight session as tech shares fall

Published on 08/21/2025 at 03:03 am EDT
(Reuters) - Japan's Nikkei share average fell for a third session on Thursday as investors sold stocks to book profits from a recent rally, with technology stocks tracking U.S. peers lower.
The Nikkei slipped 0.65% to close at 42,610.17. The index has lost 2.5% over the past three sessions following its record high on Tuesday.
The broader Topix fell 0.52% at 3,082.95.
"Investors kept selling stocks to book profits, but some investors who were not able to buy shares during the rally picked up stocks on the dip... (which) capped the Nikkei's losses," Shinkin Asset Management's senior fund manager Naoki Fujiwara said.
Chip-making equipment maker Tokyo Electron fell 2.41% and technology investor SoftBank Group lost 2.01%.
On Wall Street, the Nasdaq and S&P 500 fell overnight as investors sold tech stocks and moved into less highly valued sectors.
Drugmaker Daiichi Sankyo lost 7.18% to become the worst performer among the 225 stocks on the Nikkei.
Bucking the trend, shares of chip-testing equipment maker Advantest rose 1.67%, rebounding from a 5.6% loss on Wednesday.
Cable makers, considered a gauge for data centre demand, rose, with Furukawa Electric and Fujikura gaining 1.17% and 1.02%, respectively.
The market awaited remarks from Federal Reserve Chair Jerome Powell, who is expected to speak on Friday at the Fed's annual conference in Jackson Hole, Wyoming, for policy signals.
Investors have been pricing in a 25-basis-point rate cut in September, according to data compiled by LSEG .
Shinkin Asset's Fujiwara said the market already priced Powell's dovish comments, so remarks that are in line with expectations may trigger a sell-off in local stocks next week.
"For the Nikkei to rise further, the market needs to confirm the Fed's rate cut in September, and the fate of Japanese politics and Japanese corporate outlook for the second half of the year," Fujiwara said.
 (Reporting by Junko Fujita; Editing by Rashmi Aich and Janane Venkatraman) 

Sumber : Reuters