"Japanese stocks have had a strong rally and technical indicators suggest some overheating"
- Yumi Nishimura, analyst at Daiwa Securities Group Inc.
Japanese stocks ended Monday's session lower as a strengthening yen dimmed the outlook for exporters.
The Nikkei 225 lost 0.80%, or 78.44, to 9,698.59. The broader Topix fell 0.59%, or 4.96, to 832.86.
"Japanese stocks have had a strong rally and technical indicators suggest some overheating," said Yumi Nishimura, analyst at Daiwa Securities Group Inc.
"Sectors that have been performing strongly are slipping back a little, while investors are buying defensive shares that have gained a little less."
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