The Nikkei was down for a third day in a row during today's (May 1st) trading, continuing a difficult week for the leading Asian index.
It ended 0.4 per cent lower at 13,799.35, held up by gains in companies including Fujifilm Holdings Corp and Kao Corp.
The losses sustained on the index did not cancel out a rise of nearly 12 percent last month, marking the Nikkei's best April performance since 1993, reports Reuters.
Shun Maruyama, chief Japan equity strategist at BNP Paribas, said: "The fundamental view (on corporate profit growth) is still sluggish. The market has already priced in the effect of the currency weakness."
He pointed out that companies are remaining bearish in the economic recovery forecast for the current term and the next, despite the currency weakness.
William O’Donnell, strategist at RBS Securities in Stamford, Connecticut, recently told the Financial Times that investors in Japan are focusing on the Nikkei and the property market.
Learn about the Asian markets and CFD trading at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.