Tokyo stocks close lower on profit-taking

TOKYO – Tokyo stocks closed lower on Monday, snapping a four-day winning streak, as investors locked in profits from recent rises.

The Nikkei 225 was down 0.79%, or 211.09 points, to end at 26,433.62, while the broader Topix index fell 1.77%, or 31.60 points, to 1,754.92.

The Nikkei index had opened higher, maintaining the momentum of global rallies fuelled by robust risk appetite among foreign investors, and optimism over the development of coronavirus vaccines.

But it was “weighed down by profit-taking” because of “cautious sentiment after the rallies”, Okasan Online Securities said in a commentary.

A recent stream of positive vaccine news has brightened outlooks among global players, along with easing post-election political drama in the US.

“The global economy should be in a much better place in 2021,” said  AxiCorp chief global markets strategist Stephen Innes.

“Still, the pandemic’s resurgence will likely keep things choppy in Q1 2021 before vaccine distributions brighten the outlook over the balance of the year," he said.

This week, investors will be eyeing key United States  data including the ISM manufacturing index and jobs figures.

In Tokyo trading, carmakers were lower with Toyota dropping 3.48% to 6,999 yen and Honda tumbling 3.54% to 2,871.5 yen.

Sony lost 1.10% to 9,704 yen, while Panasonic slid 0.84% to 1,112.5 yen and Canon sank 3.63% to 1,853.5 yen.

SoftBank Group climbed 0.30% to 7,272 yen while Uniqlo casual wear operator Fast Retailing jumped 2.15% to 85,940 yen.

The dollar stood at 103.86 yen in Asian trade, against 104.03 yen in New York on Friday. – AFP, November 30, 2020