Stock Prices in Tokyo Decrease due to Profit Selling in the Morning Session
Tokyo stocks took a dip on Thursday, August 14, 2025, following six consecutive days of strong gains that saw the Nikkei 225 and TOPIX indexes reach record highs.
The Nikkei 225 closed the morning at 42,726.63, down 548.04 points (1.26%). The TOPIX finished the session at 3,060.04, a decrease of 31.87 points (1.03%).
The drop in Tokyo stocks was primarily due to profit-taking, as many investors sold shares to secure gains amid concerns about the market being overheated in the short term. This sentiment was echoed by an official at a Japanese securities firm.
Additionally, the yen's appreciation against the dollar also contributed to the selling. The yen rose following remarks from U.S. Treasury Secretary Scott Bessent, urging the Bank of Japan to raise its policy interest rate to combat inflation in Japan.
The dollar stood at 146.69-70 yen at noon, a decrease from 147.53-53 yen at 5 p.m. Wednesday. No new information about the closing values of the Nikkei 225 and TOPIX indexes was provided.
Meanwhile, U.S. stock indexes climbed on Wednesday, with the rise attributed to growing expectations for an early interest rate cut by the U.S. Federal Reserve. However, no new information about the performance of U.S. stock indexes was provided.
In summary, the key factors leading to the drop in Tokyo stocks on Thursday were profit-taking after a rapid rise in stocks over six days, including record-setting closes, perceptions of short-term market overheating, and the yen's rise triggered by inflation concerns and policy remarks. These factors combined to push Tokyo stocks lower on that morning despite recent strong gains.
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