Recommended reading:
The Nikkei 225 index closed at a high of more than 31 years. Cyclical stocks performed brilliantly.
Japanese stocks fell on Wednesday, halting three days of gains, and the Nikkei 225 index fell from its highest level since 1990.
The Nikkei 225 index fell 0.6% to 30477.07, down from its 31-year closing high of 30670.10 reached yesterday. The Nikkei relative strength index (relative strength index) has hit its highest level since January. The index is a momentum indicator that can be used to measure the extent to which an asset is overbought or oversold.
"stocks that continue to rise will be profit-taking," said Mitsushige Akano, a senior executive at Tokyo-based Yiji Asset Management. "but the downside is likely to be supported by foreign investors who either cover short positions or adjust their equity portfolios from the US to Japan," it said. "
The East Stock Exchange index fell 0.9 per cent to 2099.91. Softbank Corp.The group was the biggest drag on the decline in the benchmark stock index, down 2.4%. Of the 2184 constituent stocks, 144rose, 1974 fell and 66 were flat.
Sumitomo MitsuiMasahiro Ichikawa, chief market strategist at DS Asset Management, said on Tuesday that the Japanese stock market was likely to fall back as the market seemed "overheated." 'once the adjustment is completed, the market will rise again,'he said.
The MSCI Asia Pacific Index fell 0.3 per cent.