Japan’s Nikkei share average fell on Friday as investors booked profits ahead of a three-day weekend from the fast-paced rally, while Uniqlo brand owner Fast Retailing jumped after posting a record profit.
As of 0221 GMT, the Nikkei was down 0.9% at 48,117.92. The broader Topix slipped 1.62% to 3,205.05.
“It was natural that investors wanted to book profits after the sharp rally,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
The Nikkei surged 5% so far this week, after Sanae Takaichi was placed on course to become the next prime minister, boosting expectations of renewed fiscal stimulus and loose monetary policy.
“But worries that whether Takaichi can successfully secure coalition partners are growing. The stocks rose on expectations of Takaichi’s fiscal spending, but if the Liberal Democratic Party (LDP) can not form a solid coalition, Takaichi’s plans may not go ahead,” Yasuda said.
Technology investor SoftBank Group lost 3.74% to become the biggest drag on the Nikkei. Chip-related shares fell, with Advantest and Tokyo Electron slipping 2% and 1.5%, respectively.
The Nikkei rose by around 6,000 points from the low on September 3 to the previous session. Of which, 70% of the gains came from the rally of those three firms, said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.
Fast Retailing jumped 6.3% to become the biggest support for the Nikkei, after it posted a record high profit for the year ended August, and forecast a fifth-straight year of record profit in fiscal 2026 on its aggressive expansion in North America and Europe.
All but one of the Tokyo Stock Exchange’s 33 industry sub-indexes fell, with the brokerage index losing 3.8% to become the worst performer.
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