Advertisement
Canada markets open in 57 minutes

  • S&P/TSX

    21,708.44
    +52.39 (+0.24%)
     

  • S&P 500

    5,011.12
    -11.09 (-0.22%)
     

  • DOW

    37,775.38
    +22.07 (+0.06%)
     

  • CAD/USD

    0.7273
    +0.0010 (+0.14%)
     

  • CRUDE OIL

    82.17
    -0.56 (-0.68%)
     

  • Bitcoin CAD

    89,785.70
    +4,764.93 (+5.60%)
     

  • CMC Crypto 200

    1,341.48
    +28.86 (+2.25%)
     

  • GOLD FUTURES

    2,394.50
    -3.50 (-0.15%)
     

  • RUSSELL 2000

    1,942.96
    -4.99 (-0.26%)
     

  • 10-Yr Bond

    4.6470
    0.0000 (0.00%)
     

  • NASDAQ futures

    17,526.50
    -20.75 (-0.12%)
     

  • VOLATILITY

    18.70
    +0.70 (+3.88%)
     

  • FTSE

    7,835.02
    -42.03 (-0.53%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

  • CAD/EUR

    0.6819
    -0.0002 (-0.03%)
     

Japan's Nikkei drops on profit-booking, US debt impasse

Rocky Swift
·2 min read

By Rocky Swift

TOKYO, May 24 (Reuters) - Japan's Nikkei share index dropped for a second straight session on Wednesday as investors locked in profits following a recent rally, while no breakthrough yet over the U.S. debt ceiling issue also dampened risk appetite.

Shares of cosmetics giant Shiseido Co, which had soared 20% since mid-March, sank 5.63%, leading Nikkei decliners. CyberAgent Inc, a major investor in a new share sale in Rakuten Group Inc, dropped 4.7% ahead of a pricing of the offering. Shares of Rakuten slid 2.01%.

Toyota Motor Corp jumped 5.36%, recovering from a flash crash on Wednesday that analysts speculated was a trading error.

ADVERTISEMENT

The Nikkei fell 0.89% to close at 30,682.68. In the previous session, the index retreated from a peak of 31,352.53, a level last seen in August 1990. The broad Topix fell 0.42% to 2,152.40 on Wednesday.

Sentiment at Japanese manufacturing giants turned positive for the first time this year, while analysts said the Nikkei will end the year around the psychologically key 30,000 level, according to Reuters polls.

"Markets have run up quickly, and Japan especially so," said Mio Kato, founder of LightStreamm Research, who publishes on the Smartkarma platform. "This feels more like a pause for the market to figure out which way next - continue the rally or mean reversion."

Technical indicators have been flashing overheating signals in Japan, while U.S. shares were down sharply on Tuesday as lawmakers continued debt ceiling talks to forestall a default.

"Concerns over the U.S. debt ceiling issue have the potential to weigh on the global stock market, not just in America," said Nomura strategist Kazuo Kamitani.

Shares of Uniqlo operator Fast Retailing Co sank 2.92% after a report said the company might sell off its shuttered stores in Russia.

A jump in oil prices weighed on an airlines sub-index, with carrier ANA Holdings Inc sliding 2.54%.

(Reporting by Rocky Swift; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)