By Hideyuki Sano
TOKYO, Aug 18 (Reuters) - Japan's Nikkei share average dipped on Tuesday, slipping further away from a near-six-month peak touched last week, as political uncertainties around the world sapped investors' risk appetite.
The yen's rise fuelled profit taking in a market saddled by its already high valuation, rising U.S.-China tensions and uncertainties over U.S. fiscal stimulus.
"The earnings season is over and they weren't really supportive of a strong market rally we have seen. The market has been just bolstered by rally in Wall Street shares," said Masato Kogure, leader of execution group for institutional sales at Tokai Tokyo Securities.
Net profits of listed Japanese firms fell more than 50% from a year earlier in the previous quarter, with only pharmaceutical and food companies expecting profit growth in the financial year to next March, analysts at Okasan Securities said in a report.
The Topix traded at 16.8 times profit forecast by analysts, near the highest level in a decade.
Some market players also said the news that Japanese Prime Minister Shinzo Abe underwent a medical check-up in hospital on Monday raised worries about his health issues and weighed on the sentiment given his reflationary policy has been a major support for the market. shares .IAIRL.T tumbled 1.7% after they reported weak passenger traffics during the "Obon" holiday period earlier this month due to a rise in domestic COVID-19 infections.
Banks .IBNKS.T fell 1% as U.S. bond yields slipped while the yen's rise against the dollar hit exporters, including automakers that surged earlier this month.
Bucking the trend, the index of Mothers start-up shares .MTHR climbed 3.4% to its highest level since October 2018, on buying by individual investors. (Editing by Rashmi Aich and Amy Caren Daniel)
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.