Japanese stocks surged for two straight days until Monday so (now the) market is pushed down by profit-taking (after) US shares declined.
Japanese stocks surged for two straight days till Monday, so today's market is pushed down by profit-taking pressure, and US shares declined while we were on holiday yesterday. The move is, thus, quite natural.
A fall in US stocks was the impulse for the retreat.
It's definitely having an effect .... Foreigners are likely worried about the Bank of Japan eventually ending its super-easy monetary policy. Also some companies did down downgrade their profit forecasts and there are those investors who now see Japanese stocks as overvalued.
Investors sometimes go after these leading firms when there are concerns about higher interest rates. In a sense, these are stocks with staying power.... On top of that, their earnings have been good.