Japanese shares retreat from record peaks ahead of US data

TOKYO: Japan’s main stock indexes retreated from record highs touched during early trade on Friday, as investors locked in profits after a recent rally and positioned themselves ahead of key US economic data due later in the day.

The benchmark Nikkei index closed flat at 40,912.37, but managed to post its best weekly performance since late March. The broader Topix finished 0.5% lower at 2,884.18.

With both the indexes reaching record figures, there’s a “sense of accomplishment” in the market, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.

Analysts also pointed to some profit-taking in the wake of both indexes scaling record peaks, while a stronger yen also weighed on the market.

Japanese shares got a boost this year partly from corporate governance reforms, which fuelled expectations that local companies will continue to increase returns.