Nikkei falters

04 Oct, 2018

Japanese stocks fell on Wednesday as automakers skidded on a sharp decline in US new car sales last month while other shares, including financials, retreated after a rally over recent weeks. The Nikkei share average gave up 0.7 percent to 24,110.96, though it was still holding at 27-year highs. The broader Topix fell 1.2 percent to 1,802.73. The weak yen trend paused as the Japanese currency attracted safety bids amid concerns over Italy's budget plan.
"Japanese shares are sensitive to global investors' sentiment. Cyclical shares that rose over the past few weeks are prone to profit-taking," said Yoshinori Shigemi, a global market strategist at JPMorgan Asset Management. The auto sector was the worst performer on the board, falling 2.7 percent.
Insurers and banks also underperformed the market, shedding 1.7 percent and 1.6 percent, respectively. Toyota Motor Corp declined 2.9 percent, Honda Motor Co tumbled 4.3 percent and Nissan Motor Co shed 2.1 percent. Financial stocks also lost ground.

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