Japan’s Nikkei share average fell on Tuesday as investors exited some bullish positions after the benchmark index closed at a 33-year high in the previous session. A market holiday in the U.S. added to the cautious mood.
The Nikkei fell 1.08% to 33,389.28 by the midday break, after ending at 33,753.33, its highest close since March 1990, on Monday.
Drugmaker Daiichi Sankyo tumbled more than 14% to lead Nikkei decliners by a wide margin, after a trial of an experimental cancer drug developed with AstraZeneca disappointed investors.
Every Nikkei sector but one declined, led by a 3.37% slide for healthcare. Financials, however, added 0.88% tracking gains in U.S. peers overnight, as they raised dividends after sailing through annual stress tests.
Japan’s broader Topix index declined 0.72% to 2,304.03.
“In terms of the Nikkei’s decline today, with U.S. markets on holiday, it’s hard to expect investors to proactively take on new positions,” said Maki Sawada, a strategist at Nomura Securities.
“Considering too that the Nikkei closed at a new high yesterday, profit-taking selling is leading today’s market moves.”
Robot maker Fanuc fell 2.82% to be the Nikkei’s biggest decliner after Daiichi Sankyo. Home appliance maker Daikin Industries followed with a 2.75% slide.
Other notable losers included Uniqlo store operator Fast Retailing, down 1.46%, and startup investor SoftBank Group, which fell 0.89%.
At the other end, online retailer Rakuten Group led Nikkei gainers with a 5.63% surge, continuing its rebound from a 14-year low hit last week.
Resona Holdings was the top performing bank, rallying 2.81%. Mizuho Financial Group rose 2.63%.