Nikkei Average Dips after Topping 60,000 for 1st Time

Tokyo, April 23 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average briefly exceeded 60,000 for the first time ever in morning trading Thursday before finishing lower from the day before. The index of 225 selected issues listed on the Tokyo Stock Exchange’s top-tier Prime section fell 445.63 points, or 0.75 pct, from Wednesday to close at 59,140.23. Semiconductor-related and other technology issues attracted buying at the outset, following an overnight advance of U.S. peers thanks to U.S. President Donald Trump announcing an extension to his country’s ceasefire with Iran. The Nikkei notched a high of 60,013.98 at 9:06 a.m., climbing into the 60,000 range in just six months after topping the 50,000 line last October. But the market later succumbed to profit-taking pressure amid a sense of accomplishment from the Nikkei reaching the key milestone, and the index briefly lost over 900 points from the previous day’s close in afternoon trading. A drop in U.S. stock futures in premarket trading also weighed on investor sentiment. “Although the Nikkei hit 60,000, the number of stocks that fell was large and the overall situation cannot be described as optimistic,” an official at a Japanese securities firm said. Over 75 pct of Prime-listed issues receded Thursday. There are lingering concerns that high-flying crude oil prices may weigh on corporate earnings. With wide gaps persisting between the United States and Iran over navigation through the Strait of Hormuz and Iran’s nuclear development, it remains unclear whether talks between the two countries will make progress. In the Tokyo stock market, wariness had also been growing over a distorted situation in which a handful of stocks were pushing up the Nikkei average. “The Nikkei has finally begun to show signs of a pace adjustment,” another Japanese brokerage house official said. “The stock market has entered a phase of cooling off from overheating.” END [Copyright The Jiji Press, Ltd.]