Nikkei 225 Index falls after eight consecutive days of gains

Golden Ten Data reported on June 23 that the Nikkei 225 Index edged lower in choppy trading on Tuesday, as traders took a wait-and-see approach after eight consecutive sessions of gains. Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, said, “After the consecutive rally, it appears the market is seeing some mild profit taking.” Driven by continued buying in artificial intelligence and semiconductor-related stocks, the Nikkei 225 Index has surged sharply in recent months, repeatedly reaching record highs. On Monday, the index surpassed 72,000 points for the first time, just two trading days after first breaking above 71,000 points. Meanwhile, one of the technical indicators for the Nikkei Index—the 14-day Relative Strength Index (RSI)—stood at 73, above the 70 level, which typically signals that stock prices have risen too quickly and may face a pullback. On Tuesday, the indicator was at 70.7. “With shares of highly valued companies continuing to rise, the market has already appeared overheated, so it is not surprising to see an adjustment at any time,” Masahiro Ichikawa said. “Today, selling pressure seems to be accumulating.”