Nikkei ends at three-week low on profit-taking as second half of fiscal year begins

Japan's Nikkei share average ended at a three-week low on Wednesday in a broad sell-off as investors booked profits from the latest rally at the start of the second half of the fiscal year.

The Nikkei fell 0.85% at 44,550.85, its lowest close since September 11. The index lost for a fourth straight session.

The broader Topix lost 1.37% at 3,094.74.


"It is a retreat from the rally that boosted the Nikkei until last month," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

"Investors wanted to take profits, so sold the stocks that rose the most, such as Tokyo Electron and SoftBank Group."

Chip-making equipment maker Tokyo Electron surged 27.6% in September in its largest monthly gain since February 2024, making it a key driver behind the Nikkei's record high hit last month. The index added 5.2% in September in its sixth straight month of gains.

On the day, Tokyo Electron fell 2.09% and technology start-up investor SoftBank Group lost 2.38%, becoming the biggest drags on the Nikkei.

Chip-testing equipment maker Advantest edged up 0.17%, tracking overnight gains in the U.S. chip index.

All but two of the Tokyo Stock Exchange's 33 industry sub-indexes fell.

The bank index slipped 3.07% to become the worst-performing sector. Mitsubishi UFJ Financial Group and Mizuho Financial Group lost 3.17% and 3.83%, respectively.

The real estate firm index fell 2.83%

Drug makers rose 0.95%, with Otsuka Holdings and Chugai Pharmaceutical up 5.22% and 3.86%, respectively.

Of the 1,600 stocks trading on the TSE's prime market, 91% fell and 7% rose.