Japanese stocks take breather after sharp gains

Japan’s Nikkei share average took a breather on Wednesday after sharp gains, with some index-heavy stocks losing ground after the index hit a 26-year high.

The Nikkei fell 0.3 per cent to 23,798.90, staying slightly below its 26-year high of 23,951.61, reports Reuters.

Index-heavy stocks such as chip equipment maker Tokyo Electron (8035.T) tumbled 2.0 per cent and clothing store operator Fast Retailing (9983.T) shed 0.8 per cent, contributing 30 negative points together to the Nikkei index.

The broader Topix, however, was up 0.1 per cent to 1,891.22.

Financial stocks, which invest in higher-yielding products such as foreign bonds, were higher, with the insurance sector rising 1.6 per cent and the banking sector adding 1.5 per cent.

Yields on the 10-year US Treasury note reached a 10-month high on Tuesday, after the Bank of Japan said it will trim its purchases of Japanese government bonds and US corporate debt.

Dai-ichi Life Holdings soared 2.5 per cent, T&D Holdings added 1.4 per cent, Mitsubishi UFJ Financial Group advanced 1.4 per cent and Mizuho Financial Group gained 1.0 per cent.