A measure of Japan’s smaller stocks ended its record winning streak amid speculation shares were overbought after a 30-day streak of advances that came as spending on disaster reconstruction boosted earnings.
Japan’s TSE Second Section Price Index (TSE2), a measure of smaller companies on the Tokyo Stock Exchange, dropped 0.1 percent to 2,379.16 at the 3 p.m. close of trading today in Tokyo. The gauge advanced 12 percent during a 30-day stretch of gains through yesterday, the longest series of increases ever, according to data compiled by Bloomberg going back to 1961.
The 14-day relative strength index for the measure was 95 today, above the 70 threshold that suggests to some traders that equities have been overbought.
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