TOKYO: Japan’s Nikkei share average edged higher on Monday, with further gains capped by profit-taking after both main stock indexes touched fresh all-time peaks last week.

The Nikkei rose 0.21% to 40,999.80 by the midday break, while the broader Topix was down 0.13% at 2880.32.

Market players have rushed to secure profits after the benchmark Nikkei index rose sharply last week to hit an all-time intra-day high of 41,100.13 on Friday, while the Topix hit a record peak of 2,906.80.

The Nikkei retreated after reaching a new high in March as the market adjusted due to a short-term sense of overheating, and a similar pattern is expected this time as well, said Maki Sawada, an equity strategist at Nomura Securities.

While trader sentiment got a boost after Wall Street stock indexes closed firmer at the end of last week on the back of softer-than-expected US labour data, it was not enough to push Japanese shares much higher on Monday.

Risks also lay ahead this week if market participants interpreted the testimony from Federal Reserve Chair Powell as dovish or US inflation data showed more cooling, giving relief to a weakened yen, said Charu Chanana, global market strategist and head of FX strategy at Saxo.

“If more such dovish outcomes were to come through this week … the scope of outperformance for Japanese equities could continue to wane as the yen recovers from its record lows.”

Of the Nikkei’s 225 constituents, 83 shares advanced and 139 declined.

Japan’s Nikkei share average crosses all-time high, breaking 1989 record

In individual shares, SoftBank Group gained 2.4% to give the biggest lift to the Nikkei after US-listed shares of British chip designer ARM Holdings, in which the Japanese firm has a 90% stake, surged to an all-time high.

Yaskawa Electric fell 3.6% after the electrical equipment maker’s latest revenue results disappointed.