Nikkei declines from record levels amid volatile trading

Japan’s Nikkei index fell from its record high during Monday’s trading, under pressure from investors taking profits after a rise in stocks that continued for several days.

The Nikkei index touched a record high of 41,112.24 points in a volatile trading session, but closed down 0.32% at 40,780.70 points. The broader Topix index fell 0.57% to 2,867.61 points.

Market sentiment initially rose thanks to the strong performance of Wall Street’s main indices on Friday, after weaker-than-expected jobs data in the United States reinforced expectations of an interest rate cut as early as September.

Some Japanese technology stocks tracked the gains of their American counterparts, which supported the Nikkei.

Investors sought to take profits after Japan’s main stock indices achieved gains for five consecutive days, reaching record levels during session trading last week. Of the 225 stocks listed on the Nikkei index, only 53 stocks rose, while 171 stocks fell.

Electrical equipment maker Yaskawa Electric fell 4.4%, becoming one of the worst performing stocks by percentage after announcing disappointing revenue results. Shares of Tokyo Electron, a giant chip equipment manufacturer, fell 0.9%.