Japan’s Topix Index fell for the first time in three days, retreating from the highest level since September 2008, as the yen strengthened and technical indicators signaled the market may be overbought.
Japanese stocks surged, with the Nikkei 225 Stock Average capping the biggest three-day rally in two years, after Haruhiko Kuroda announced unprecedented stimulus in his first policy meeting as Bank of Japan governor.
The Nikkei 225 Stock Average fell from a seven-month high after a technical indicator signaled the market may be overheating. Losses were limited as utilities rose on prospects for a restart of nuclear reactors this summer.
Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments Ltd., which manages the equivalent of about 6 trillion yen ($67 billion), speaks on the Bank of Japan’s policy decision today and its impact on the market.
Japanese shares fell, with the Topix Index halting a 13-week winning streak, amid disappointing earnings and on concern Group-of-20 leaders will pressure Japan to curb its currency depreciation. The yen strengthened a fourth day and yields on government bonds fell.