Japan's Nikkei drops amid weak trading due to Christmas holidays

(MENAFN) Japan's Nikkei fell on Tuesday's Tokyo Financial Exchange, losing some of the gains it made in the previous session. This decline came amid weak trading in a short trading week due to the Christmas holidays. Despite the previous session's rise of 1.2 percent, the first rise since December 12, the index fell 0.32 percent to close at 39,036.85 points. The broader Topix index was also tepid performers, closing almost unchanged at 2,727.26 points.

Among the most notable stocks that saw significant movements was Honda Corp., which rose more than 12 percent after the company announced a share buyback program after the market closed on Monday. The announcement came after Honda revealed negotiations with Nissan over a possible merger between the two companies, which helped increase optimism about Honda's shares.

Of the 225 companies that make up the Nikkei, 102 rose, while 122 declined. Only one company saw its share price stabilize at the close of trading. The overall sentiment in the market remained cautious, reflecting the impact of the holiday period on trading activity.

Maki Sawada, equity strategist at Nomura Securities, said the market was unlikely to show any clear direction in the short term due to the absence of major catalysts. He added that market participants are likely to be aware of the holiday period, which has contributed to a calm trading environment.

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