The Japanese stock market Nikkei index fell back in early trading on Thursday, after a three-day rally, investors took a breather. However, the decline in the broader market was limited by the optimism surrounding the Sino-US trade negotiations.
Nikkei. N225 closed down 0.13% to 21,402.69 in early trading. The previous trading day touched a high of 21,494.85 points over the two-month high. The stock index has risen 2.5% in the past three days.
"The Nikkei is approaching the important psychological resistance at 21,500, so it is understandable to make a profit," said Yutaka Miura, senior technical analyst at Mizuho Securities. "The US-China trade negotiations bring relief to the market. Therefore, the decline should be limited for the time being."
US President Trump said on Tuesday that trade negotiations with China are progressing smoothly and hinted that he is willing to postpone the deadline for completing the consultation on March 1, said March 1. Day is not a day of "magic power."
Index weighted exporter stocks fell, Daikin Industries 6367.T fell 1.5%, Fanuc 6954.T fell 0.85%, and Nitto Denko 6988.T fell 1.96%.
Texa Stock Price Index .TOPX closed down 0.23% to 1,609.79 points in early trading.