Nikkei index gives up most gains after profit-taking selling

Japanese Nikkei index rose slightly at the close today, Tuesday, ending losses that continued for five consecutive sessions, but it gave up most of its early gains as investors sold shares to take profits.

According to “Reuters”, the Nikkei index rose 0.04 percent to 32,203.57 points at the close, while the broader Topix index reversed its course and fell 0.31 percent to 2,236.40 points at the close.

“Investors sold stocks after the Nikkei index rose, while the yen’s rise was a negative factor,” said Seichi Suzuki, senior stock market analyst at the Tokai Tokyo Research Institute.

The Nikkei index rose after the end of selling operations in exchange-traded exchange-traded funds, in a move aimed at distributing profits, which market participants valued at more than one trillion yen ($7.10 billion).

“Some investors bought those shares and sold them as soon as the Nikkei index rose,” Suzuki added

He stated that the rise of the yen against the dollar prompted investors to sell stocks

On Tuesday, the yen rose above 141 against the dollar for the first time in almost a month, after Federal Reserve officials indicated that the council was nearing the end of the monetary tightening cycle.