Japan’s Nikkei share average fell on Monday morning, snapping a seven-day winning streak as investors took profits from its recent gains after the yen strengthened against the dollar.
The Nikkei dropped 0.8 percent to 18,243.33 in midmorning trade after rising 4 percent in the last seven sessions.
The benchmark index has risen 12 percent since Donald Trump was elected president earlier this month, which triggered a spike in Treasury yields on heightened expectations of increased fiscal spending and inflation.
But traders say that such expectations may have peaked, peaking, with investors closely focused on a meeting of members of the Organization of the Petroleum Exporting Countries (OPEC) this week.
“People have been speculating when the rallies would end,” said Hikaru Sato, a senior technical analyst at Daiwa Securities. “The OPEC meeting may trigger big profit-taking, so they are cautious now.”
The dollar fell 1.2 percent to 111.89 yen following its rise to an 8-month high of 113.900 last week.
Exporters, which rose recently on hopes the weaker yen would boost their earnings, languished. Toyota Motor Corp shed 0.8 percent, Nissan Motor Co declined 1.0 percent and Hitachi Ltd dropped 1.6 percent.
Crude oil has slumped amid uncertainty over whether OPEC would reach an output deal, hurting mining stocks.
Inpex Corp tumbled 1.8 percent, while Japan Petroleum Exploration Co dived 3.0 percent.
Bucking the weakness, Canon Inc gained 1.8 percent after the company said it will pay an dividend of 75 yen for the fourth quarter through December, making the total annual dividend payout 150 yen.
The broader Topix dropped 0.3 percent to 1,460.16, snapping an 11-day winning streak.
The JPX-Nikkei Index 400 shed 0.3 percent to 13,104.21.