Asian stock market: Japan's Nikkei slips from 33-year high as investors book profits

Asian stock market: Japan’s Nikkei share average fell on Tuesday as investors exited some bullish positions after the benchmark index closed at a 33-year high in the previous session. A market holiday in the U.S. added to the cautious mood. The Nikkei fell 1.08 per cent to 33,389.28 by the midday break, after ending at 33,753.33, its highest close since March 1990, on Monday. Of its 225 components, 158 fell, 64 rose and three were flat. Drugmaker Daiichi Sankyo tumbled more than 14 per cent to lead Nikkei decliners by a wide margin, after a trial of an experimental cancer drug developed with AstraZeneca disappointed investors.

Every Nikkei sector but one declined, led by a 3.37 per cent slide for healthcare. Financials, however, added 0.88 per cent tracking gains in U.S. peers overnight, as they raised dividends after sailing through annual stress tests. Japan’s broader Topix index declined 0.72 per cent to 2,304.03. “In terms of the Nikkei’s decline today, with U.S. markets on holiday, it’s hard to expect investors to proactively take on new positions,” said Maki Sawada, a strategist at Nomura Securities. “Considering too that the Nikkei closed at a new high yesterday, profit-taking selling is leading today’s market moves.”

Robot maker Fanuc fell 2.82 per cent to be the Nikkei’s biggest decliner after Daiichi Sankyo. Home appliance maker Daikin Industries followed with a 2.75 per cent slide. Other notable losers included Uniqlo store operator Fast Retailing, down 1.46 per cent, and startup investor SoftBank Group, which fell 0.89 per cent. At the other end, online retailer Rakuten Group led Nikkei gainers with a 5.63 per cent surge, continuing its rebound from a 14-year low hit last week. Resona Holdings was the top-performing bank, rallying 2.81 per cent. Mizuho Financial Group rose 2.63 per cent. (Reporting by Kevin Buckland; Editing by Rashmi Aich)