Japan stocks tumbled Thursday as investors took profits after the previous day’s rally and property shares slid on an analyst downgrade.
?The benchmark Nikkei 225 stock average lost 102.95 points, or 1 percent, to 10,744.03 after hitting an eight-week high Wednesday.
The broader Topix index fell 0.7 percent to 940.79.
?But Japanese shares should gain strength in the months ahead, analysts said, thanks to a healthier global economy and improving company earnings.
?”We believe Japanese equities are on the brink of being ripe for investment and forecast they will follow a recovery trend” next fiscal year starting April, said Shun Maruyama of Credit Suisse Securities in Tokyo.
?The Bank of Japan’s decision Wednesday to ease monetary policy by offering more cheap bank loans had little impact on financial markets. Intended to escalate the fight against deflation, the expected move had already been priced in by investors.
?Real estate issues led the day’s losses, with Mitsubishi Estate Co. down 3.8 percent at 1,476 yen and Mitsui Fudosan Co. shedding 2.4 percent to 1,613 yen. Selling ensued after Morgan Stanley downgraded its view on the sector to “cautious” from “in-line.”
?Exporters also retreated as the yen strengthened against the dollar and euro. Canon Inc. fell 2.8 percent to 4,25 yen, and Kyocera Corp. finished 2 percent lower at 8,560 yen.
?In currencies, the dollar slipped to 90.14 yen from 90.34 yen late Wednesday. The euro stood at $1.3678 from $1.3733.