Japan’s Nikkei 225 share average drifted lower on Tuesday, marking the end of an eight-session winning streak that had propelled the benchmark to new record highs.
Trading remained choppy as market participants took a breather, shifting from aggressive buying to cautious consolidation after the extended rally.
The pullback follows a dramatic Monday session where Asian equities staged a broad-based rally, led by the Nikkei’s climb of more than 5%.
The pullback follows a dramatic Monday session where Asian equities staged a broad-based rally, led by the Nikkei’s climb of more than 5%.
That surge was largely driven by reports of a peace agreement between the United States and Iran, which significantly reduced geopolitical risk premiums across global markets.
With the immediate relief rally priced in, Tuesday’s session reflected a natural cooling of sentiment as traders assessed the sustainability of the gains.
The pause in momentum also comes against a backdrop of mixed macroeconomic signals.