This photo taken on May 24, 2023 shows the Tokyo Stock Exchange in Tokyo, Japan. Japan's benchmark Nikkei stock index closed lower Wednesday as investors continued to lock in profits following the market's recent gains amid concerns continued over the U.S. debt ceiling issue and the potential of an unprecedented default. (Xinhua/Zhang Xiaoyu)
TOKYO, May 24 (Xinhua) -- Japan's benchmark Nikkei stock index closed lower Wednesday as investors continued to lock in profits following the market's recent gains amid concerns continued over the U.S. debt ceiling issue and the potential of an unprecedented default.
The 225-issue Nikkei Stock Average dropped 275.09 points, or 0.89 percent, from Tuesday to close the day at 30,682.68.
The broader Topix index, meanwhile, lost 9.09 points, or 0.42 percent, to close at 2,152.40.
Local brokers said that investors continued to take profits following the market's extended run of gains recently, leading to the Nikkei to close lower for a second-straight day amid signs the market may be overheating.
"The balance between supply and demand has flipped now that foreign buying has run its course, and the predominant trend is now focused on taking profits," Shingo Ide, chief equity strategist at the NLI Research Institute, was quoted as saying.
They also pointed out that Wall Street closing lower overnight on concerns over the U.S. debt ceiling issue also prompted investors to take profits, with fears growing as negotiations over the issue have made little progress as the deadline nears.
"Concerns over the U.S. debt ceiling issue have the potential to weigh on the global stock market, not just in America," Kazuo Kamitani, a strategist at Nomura Securities, was quoted as saying.
Market analysts said considerations were also made due to prospects being raised of the U.S. Federal Reserve continuing with its aggressive rate hike policy to tame inflation, following the release of solid U.S. manufacturing activity data.
Heavily weighted issues dragged the broader market down, with Uniqlo clothing chain operator Fast Retailing dropping 2.9 percent, while technology investor SoftBank Group fell 2.2 percent following a rating downgrade.
Crude oil prices spiking sent airlines lower, with ANA Holdings Inc. losing 2.5 percent.
Fujitsu shed 0.8 percent, while cosmetics firm Shiseido Co. was another notable decliner, losing 5.6 percent.
By the close of play, air transportation, land transportation, and service-oriented issues comprised those that declined the most.
The turnover on the third trading day of the week came to 3,188.46 billion yen (23.01 billion U.S. dollars). ■
This photo taken on May 24, 2023 shows the Tokyo Stock Exchange in Tokyo, Japan. Japan's benchmark Nikkei stock index closed lower Wednesday as investors continued to lock in profits following the market's recent gains amid concerns continued over the U.S. debt ceiling issue and the potential of an unprecedented default. (Xinhua/Zhang Xiaoyu)
A woman passes by a screen displaying stock market information in Tokyo, Japan, May 24, 2023. Japan's benchmark Nikkei stock index closed lower Wednesday as investors continued to lock in profits following the market's recent gains amid concerns continued over the U.S. debt ceiling issue and the potential of an unprecedented default. (Xinhua/Zhang Xiaoyu)
A woman passes by a screen displaying stock market information in Tokyo, Japan, May 24, 2023. Japan's benchmark Nikkei stock index closed lower Wednesday as investors continued to lock in profits following the market's recent gains amid concerns continued over the U.S. debt ceiling issue and the potential of an unprecedented default. (Xinhua/Zhang Xiaoyu)