Japan's Nikkei retreats from 6-week high as investors lock in gains
EWJ•Japan's Nikkei 225 fell 0.94% to 68,309.46, retreating from a six-week high and trimming its weekly advance to 2.9%. The Topix slipped about 1% to 4,091.00.
1. Indexes close lower
Investors took profits and turned cautious about interest rates, inflation and geopolitical risks. The Nikkei had surged 3.3% on Thursday; 173 Nikkei stocks fell on Friday, while 51 rose.
2. Inflation and market outlook
Tokyo core inflation accelerated in September at its fastest pace in 10 months, supporting the case for further rate hikes. An analyst said short-term overheating concerns were likely to prompt profit-taking, while the outlook for domestic shares remained positive, supported by improving sentiment among large manufacturers in the Bank of Japan's tankan survey.
3. Individual stocks diverge
SoftBank Group fell 5.83%, Nissan Motor dropped 4.97% to its lowest close since February 2009, and Terumo lost 4.59%. Resonac Holdings gained 8.71%, Furukawa Electric rose 7.68%, and Baycurrent added 6.15%.
