Japanese equities have crossed into negative territory, erasing strong gains earlier in the session as investors take profits after stocks hit a five-month high.
The Nikkei 225 had jumped 0.6 per cent earlier on Monday to 15,442 - its highest since late January - but the average is now trading 0.1 per cent lower. The broader Topix is doing worse, losing 0.3 per cent, FTAdviser sister publication FastFT reports.
Japanese stocks have gained for each of the last five weeks and the streak looked set to continue after upbeat manufacturing reports from both Japan and China early on Monday.
But the Japanese yen then strengthened 0.2 per cent to 101.9 per dollar, reflecting a turn away from risky assets.
Chris Weston, strategist at IG, notes the fading momentum is likely to affect the European open: “European markets should find support, although the Nikkei is finding sellers into the afternoon and this is causing a few sellers to creep into the European opening calls.”
Gains around the region have been pared, though markets remain positive.
Hong Kong’s Hang Seng Index, up 0.9 per cent earlier , is now just 0.3 per cent higher on the day.
Sydney’s S&P/ASX 200, up 0.9 earlier, is now up 0.6 per cent.
