TOKYO: Japan’s Nikkei share average fell for a third straight session on Monday, after spending the day flip-flopping between small gains and losses.
The Nikkei closed 0.25% lower at 32,698.81.
The benchmark index had fallen about 2.4% in the prior two sessions, following its multi-month surge to a 33-year high of 33,772.89 last week.
The Nikkei has not fallen for more than two successive sessions since its current rally began in mid-March.
The broader Topix lost 0.2% to 2,260.17.
The Nikkei came under pressure early, declining as much as 1.2% following a slump on Wall Street on Friday, with the tech-heavy Nasdaq falling the most among the major indexes.
Japanese chip-related shares were among the Nikkei’s biggest drags, with Tokyo Electron sliding 0.83% and Advantest dropping 1%.
Uniqlo store operator Fast Retailing was the biggest weight on the index, shaving 23 points with a 0.64% decline.
Bargain-hunting investors came in several times to push the Nikkei into positive territory, but ultimately were unable to keep it there.
Japan’s Topix gains for 2nd day on energy, banks; Chip stocks slump
“This is a very natural correction, given that the Nikkei has risen so quickly,” said Norihiro Yamaguchi, senior Japan economist at Oxford Economics.
“Looking beyond that though, with US equities losing momentum, I think a strong increase in Japanese equities from here is unlikely.”
Among notable winners, Toyota Motor climbed 0.98% after sinking to its lowest since June 13 on Friday, and Nintendo jumped 0.95% following its retreat from a 14-month high hit on Thursday.
Shares of JSR Corp surged 21.65% at the close, after spending the day untraded amid a glut of buy orders.
The semiconductor materials maker is considering a deal to be acquired by state-backed Japan Investment Corp (JIC).
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