Tokyo shares snap winning streak

Tokyo’s benchmark Nikkei index closed lower Thursday, snapping an eight-day winning streak as investors cashed in on recent rapid gains.

The Nikkei 225 index fell 0.57 percent, or 173.02 points, to 30,008.19, while the broader Topix index

slipped 0.71 percent, or 14.68 points, to 2,064.93.

“It’s quite natural to see profit-taking after shares rose quite fast recently,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

“Sentiment remains strong but full-fledged recovery won’t come until Japan can ease the impact of the pandemic,” Horiuchi told AFP.

Later in the day, the government is set to extend a virus state of emergency for Tokyo and other areas until September 30.

Thursday’s decline was also due to falls in US shares as well as the upcoming settlement of futures and options, brokers said.

Investors are paying attention to the race to replace Prime Minister Yoshihide Suga, who will not run for his ruling party’s leadership, effectively ending his tenure as premier.

Whoever wins the race will lead the party into general elections in which the Liberal Democratic Party is expected to maintain a majority.