Tokyo shares plunge at close on profit-taking

TOKYO shares fell across the board on Wednesday (May 31) as investors locked in profit after recent gains, while also monitoring the risk of a US debt default.

The benchmark Nikkei index lost 1.41 per cent, or 440.28 points, to close at 30,887.88, while the broader Topix index fell 1.32 per cent, or 28.59 points, to 2,130.63.

Japanese stocks were down throughout the day as investors locked in profits following recent three-decade highs for the Nikkei.

“A wide range of shares came under profit-taking pressure” following four straight winning sessions after steady gains seen throughout May, IwaiCosmo Securities said.

Market players were also cautious ahead of a congressional vote in Washington on a deal to raise the US debt ceiling, the brokerage said.

The yen’s relative strength and weaker-than-expected Japanese machinery orders data also brought down share prices, it said.

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Fresh Chinese data pointing to slowing manufacturing activity weighed on regional markets, Daiwa Securities said

Nintendo fell 0.90 per cent to 5,936 yen. Fast Retailing, which operates the Uniqlo brand, lost 1.89 per cent to 32,680 yen. Toyota fell 1.62 per cent to 1,908.5 yen.

Advantest, which makes tests for semiconductors, gave up 1.00 per cent to 17,910 yen. Tokyo Electron, a builder of tools to make semiconductors, fell 2.00 per cent to 19,315 yen. AFP