Japan's Nikkei index drops from 5-month high
Date
12/30/2024 12:58:15 AM
(MENAFN) Japan's NIKKEI index fell from a five-month high reached in the previous session, closing out the final trading day of 2024 with a retreat as investors engaged in profit-taking. The index dropped 0.75 percent to 39,979.68 by the midday break, despite opening slightly higher by 0.11 percent. On Friday, the Nikkei had closed at a five-month peak, marking the end of a three-session winning streak. The index has gained 19.5 percent overall this year, reflecting strong market performance throughout 2024.
The broader Topix index also edged lower, declining 0.42 percent to 2,789.98. According to Fumio Matsumoto, chief strategist at Okasan Securities, the pullback was driven by a lack of clear catalysts for the Nikkei to surpass the psychologically significant 40,000 level. Matsumoto noted that this selling was not indicative of a pessimistic outlook for 2025 but rather a precautionary move by investors seeking to minimize risk ahead of Japan's extended New Year holiday period.
Trading sentiment was weighed down by declines in specific sectors, including chip testing equipment maker Advantest, which dropped 3.83 percent, contributing significantly to the Nikkei's downturn. Nissan Motor Co saw a steep decline of 5.64 percent, making it the largest percentage loser on the index. This came after a month-long surge of about 40 percent in Nissan's shares, fueled by ongoing merger discussions with Honda Motor Co.
Meanwhile, shares of Makino remained untraded at 6,135 yen, locked at a daily limit of 10,750 yen following a surprising takeover bid from Japanese manufacturing giant Nidec, which Makino rejected. Japanese markets are set to reopen on January 6, following the New Year holiday closure starting after this session. This extended holiday break further contributed to a cautious trading environment as the year concluded.
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