TOKYO: Japan’s Nikkei share average fell on the first trading day of 2025 on Monday as investors sold stocks after the index’s year-end rally, overshadowing gains in technology stocks.
The Nikkei shed 1.25% to 39,394.27 by the midday break after opening 0.13% higher.
The index gained 19% in 2024 but closed at 39,894.54 on Dec. 31, failing to maintain the 40,000 level it touched earlier in the session.
“The Nikkei fell after rallying at the end of last year when overseas investors were absent. But the index is at a neutral level at around 39,400,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
The Nikkei’s losses will be limited for some time with demand from retail investors adding stocks to their tax-free stock investment programme NISA, or the Nippon Individual Savings Account, Kamada said.
“Whether the index will go up or down depends on overseas stocks’ direction.”
Uniqlo parent Fast Retailing fell 3.14% to drag the index the most.
Electronic component maker TDK slipped 3.21%.
The broader Topix fell 0.97% to 2,758.03, led by Toyota Motor’s 4.32% decline.
Japan’s Nikkei rises as tech shares gain
Caution over Toyota’s last month gains outweighed optimism for the company’s outlook supported by a weaker yen, Kamada said.
Toyota rose 23% in December, while Topix gained 3.9%.
Nippon Steel snapped five straight sessions of gains to slip 0.53% after US President Joe Biden blocked its proposed $14.9 billion acquisition of US Steel.
Technology heavyweights rose, tracking Wall Street’s strong finish on Friday. Tech start-up investor SoftBank Group climbed 1.57% to become the biggest support for the Nikkei.
Chip-testing equipment maker Advantest rose 0.55%.
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