Tokyo stocks close down 200 yen on profit-taking, though rapid recovery seen in afternoon session

The Tokyo stock market declined throughout the session on June 2 as profit-taking hit major stocks. However, while the Nikkei average tumbled more than 1,300 yen at one point, it rapidly clawed back losses in the afternoon.

The Nikkei Stock Average closed down 200.09 yen from the previous session at 66,734.24 yen, marking its first decline in three sessions. Estimated trading volume on the Prime Market was 2.74 billion shares, with a turnover of 12.50 trillion yen. Advancing issues totaled 439 against 1,091 declining, while 33 closed unchanged.

Tokyo shares were dominated by risk-averse sentiment. Although the Nasdaq Composite Index posted its eighth consecutive gain and fifth straight record high on the previous day, alongside a record-breaking Dow Jones that provided a tailwind for semiconductor-related stocks, concerns over the market's rapid pace triggered selling. Futures-driven selling at one point dragged the Nikkei down to the mid-65,000 yen level, but afternoon buybacks sparked a recovery of over 1,000 yen from the day's low, pushing the index into the upper 66,000 yen range at the close. Amid lingering uncertainty over the situation in Iran, selling in cyclical stocks was also prominent. While falling long-term interest rates helped many AI and semiconductor-related shares recover in the second half, decliners outnumbered gainers, accounting for 70% of individual issues.

Among individual stocks, Kioxia Holdings <285A> staged a sharp afternoon turnaround after logging a historic trading value in the 3.20 trillion yen range, while SoftBank Group Corp. <9984> closed slightly higher. TAIYO YUDEN CO., LTD. <6976> remained firm. ADVANTEST CORPORATION <6857> and Tokyo Electron Limited <8035> advanced, with Lasertec corporation <6920> also attracting solid buying. Fixstars Corporation <3687> surged as the day's top gainer, while MATSUYA CO., LTD. <8237> and Y.A.C.HOLDINGS CO.,LTD. <6298> rallied. Rigaku Holdings <268A> attracted investor interest, and HARIMA CHEMICALS GROUP, INC. <4410> jumped sharply.

On the other hand, Murata Manufacturing Co.,Ltd. <6981> lacked momentum, Furukawa Electric Co., Ltd. <5801> declined, and IBIDEN CO.,LTD. <4062> fell. Mitsubishi Heavy Industries,Ltd. <7011> softened, while Mitsui Kinzoku Company, Limited <5706> was sold off sharply. TOYOTA MOTOR CORPORATION <7203> retreated, and FAST RETAILING CO., LTD. <9983> tested lower ground. NITTO BOSEKI CO.,LTD. <3110> dropped significantly. Additionally, Future Innovation Group, Inc. <4392>, NIPPON CHEMI-CON CORPORATION <6997>, and MUSASHI SEIMITSU INDUSTRY CO.,LTD. <7220> plunged.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.