Tokyo's benchmark index closed lower on Wednesday, slipping off a one-year high hit the previous day as investors shuffle their positions before the holiday season. The Nikkei 225 rose in early trade after gains on Wall Street and as Japan's top central banker said he saw no problem with a drop in the yen that has revved up equity markets.
But the fizz came off the market as some investors took their cards off the table.
Global equity markets have been on a tear as Donald Trump's US election win last month sparked expectations of big government spending and tax cuts. "Foreign investors who played a key role in driving the so-called Trump rally in Japan are now on vacation," said Norihiro Fujito, a Tokyo-based senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
"December tends to be a month when the market moves are driven by retail day traders, with trading volumes drying up significantly," he told Bloomberg News. The Nikkei lost 0.26 percent, or 50.04 points, to end the day at 19,444.49. The broader Topix index of all first-section issues fell 0.48 percent, or 7.42 points, to 1,544.94.
Despite the fall, market sentiment was upbeat with a brighter outlook for the economy at home and overseas. The Japanese government upgraded its monthly economic assessment Wednesday, a day after the Bank of Japan lifted its view of the world's number three economy for the first time in over a year, as it pointed to a pickup in exports.
On Tuesday, European stock markets churned higher and the Dow Jones Industrial Average edged ever closer to the 20,000-point milestone, unfazed by deadly attacks in Turkey and Germany. The yen's recent slide - a plus for Japanese exporters' profitability - has supported stocks and lifted hopes for stronger growth in the economy. On Wednesday afternoon, however, the greenback took a breather, edging down to 117.57 yen from 117.83 yen in New York Tuesday.
In stock trading, Nissan climbed 2.78 percent to finish the day at 1,210.5 yen while Toyota closed 0.12 percent lower at 7,122 yen. Brokerage Nomura fell 0.82 percent to 720.3 yen, and Sony lost 0.77 percent to end at 3,336 yen. Apple supplier Japan Display jumped 2.52 percent to 366 yen after it struck a deal with a government-backed fund to receive a cash injection of 75 billion yen ($638 million). Launched in April 2012 from the integration of the display units of Sony, Toshiba and Hitachi, Japan Display has struggled against tough competition in the global market for smartphone screens.
Comments
Comments are closed for this article.