Japan’s Nikkei surrenders early gains as investors seal in profits. The Nikkei share average in Japan declined on Monday, erasing initial gains, as investors divested equities to secure profits during a lackluster trading session following a U.S. holiday-shortened session over the weekend.
At the midday break, the Nikkei index was down 0.43% at 33,479.71, following an initial gain of 0.6%. To 2,381.63, the broader Topix had declined 0.39 percent.
“The market reversed course from its initial upward trajectory as investors sought to book their profits,” according to Shoichi Arisawa, general manager of IwaiCosmo Securities’ investment research division.
“There were virtually no market-moving cues, and trading appeared light following the U.S. holiday, so the market lacked a distinct direction.” However, the present session’s weak U.S. futures weighed on sentiment.
On Friday, during holiday-shortened trading, U.S. equities closed with little change on low volume and conviction as investors awaited indications of consumer resilience at the start of the seasonal shopping season.
The technology investor SoftBank Group declined 1.94 percent, the most detrimental to the Nikkei. Kyocera, a manufacturer of ceramics, declined 1.79 percent.
Mitsubishi Heavy Industries became the company with the worst percentage performance on the Nikkei, falling 5.09%.
Many purchase orders flooded untraded Taisho Pharmaceutical shares after the pharmaceutical company announced a buyout by management for 8,620 yen per share, effectively taking the business private.
At midday, the stock was quoted at its daily upper price limit of 6,546 yen.
Sharp, the manufacturer of televisions, ascended 2.85% to reach the highest percentage gain on the Nikkei.
Shippers exhibited the best performance among the 33 industry sub-indexes listed on the Tokyo Stock Exchange, with a gain of 1.36%.