Japan's Nikkei slips on profit-taking after BOJ decision
Updates at 0600 GMT
TOKYO, Oct 31 (Reuters) -Japan's Nikkei share average index ended lower on Thursday as investors locked in profits after the Bank of Japan (BOJ)kept key rates unchanged.
The Nikkei .N225 fell 0.5% to close at 39,081.25. The index tracked overnight declines in U.S. equities to open 0.25% lower.
It fell more than 1% after the BOJ announced its policy. The broader Topix .TOPX slipped 0.3% to 2,695.51.
The BOJ maintained ultra-low interest rates on Thursday and signalled the need to scrutinise global economic developments.
"Investors sold stocks to book profits after the big event was over," said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.
"The Nikkei was a little bit overheated after a recent rally. The BOJ's decision was in line with expectations but it became a trigger for the sell-off."
The Nikkei rose to a two-week closing high on Wednesday.
Since peaking in July, it has been held hostage by a volatile yen JPY=, driven by expectations of a U.S. rate cut and a strongerdollar.
Still, the index has risen more than 17% this year.
Japan's markets have been hamstrung this week by political uncertainty after the ruling Liberal Democratic Party-led coalition lost its parliamentary majority in the weekend election.
The make-up of the future government is in flux and Prime Minister Shigeru Ishiba and the LDP may court smaller opposition parties that favour maintaining ultra-loose monetary policy and oppose plans to raise taxes.
Meanwhile, amongstocks, Uniqlo-owner Fast Retailing 9983.T fell 2.21% and was the biggest drag on the Nikkei on the day.
Kyocera 6971.T tanked 10.42% after the smartphone maker cut its full-year operating profit forecast for fiscal year 2025.
Chip-testing equipment maker Advantest 6857.T jumped 6.43% on a profit forecast upgrade, but pared some of the early gains due to profit booking.
Reporting by Junko Fujita; Editing by Alan Barona, Sherry Jacob-Phillips, Sumana Nandy and Sonia Cheema
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
