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Japan's Nikkei snaps four-session winning run on profit-taking
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Japan's Nikkei snaps four-session winning run on profit-taking
Sep 25, 2024 12:37 AM

(Updates with levels as of 0600 GMT)

By Brigid Riley

TOKYO, Sept 25 (Reuters) - Japan's Nikkei share average

ended lower in a choppy trade on Wednesday despite support from

technology and China-related shares, as profit-taking set in.

The Nikkei closed down 0.19% at 37,870.26, snapping

a four-session winning streak, while the broader Topix

slipped 0.23% to 2,650.5.

The S&P 500 and Dow ended at record highs on Tuesday, and

the tech-heavy Nasdaq also finished up, with the

Philadelphia SE Semiconductor index surging more than 1%

to boost a portion of Japanese chip-related shares on Wednesday.

Advantest ( ADTTF ), which counts U.S. chip star Nvidia ( NVDA )

as a customer, rallied 3.8% and was the biggest boost

to the Nikkei.

Fluctuations in dollar/yen were also limited on Wednesday,

giving the exchange rate-sensitive market a breather.

However, analysts cited a lack of fresh drivers capping

gains for the local stocks.

The market was also ripe for profit-taking after the Nikkei

rallied for a fourth straight session to a three-week closing

high in the previous session, supported by the Bank of Japan's

dovish slant.

"We're in a situation where it's tough to find good material

today," said Kazuo Kamitami, a strategist at Nomura Securities.

However, a strong performance by machinery-related shares

after China's stimulus boost on Tuesday stood out, Kamitami

said.

Machinery was up 1.6% to lead gains among the

Tokyo Stock Exchange's 33 industry groups, with Daikin

Industries ( DKILF ) adding 3.4%.

Other shares with China ties also saw gains, including

cosmetic firm Shiseido ( SSDOF ), up 3.1%, and Fanuc Corp ( FANUF )

adding 4.5%.

Electrical equipment maker Yaskawa Electric ( YASKF )

rose 5.6% to become the top percentage gainer on the Nikkei.

The largest percentage losses in the index were

pharmaceutical company Kyowa Kirin ( KYKOF ), down 13.1%,

followed by Resona Holdings ( RSNHF ), losing 5.1% and insurance

firm Tokio Marine Holdings ( TKOMF ), slumping 4%.

Among other shares, Toyota Motor ( TM ) rose 1%, after

the automaker bought back some of its own shares during morning

trade.

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