Tokyo stocks open flat in thin year-end trade

TOKYO: Tokyo shares opened flat on Wednesday in thin holiday trade after Wall Street advanced overnight.

The benchmark Nikkei 225 index inched down 0.05 percent, or 14.10 points, to 29,055.06, while the broader Topix index fell 0.10 percent, or 2.07 points, to 2,002.95.

The dollar stood at 114.78 yen, also barely changed from 114.81 on Tuesday in New York.

"The Tokyo market is expected to stay solid," Okasan Online Securities said.

"While gains of US tech shares seem to be taking a breather, the Dow has gained and the market is likely to remain on a strong footing," the brokerage added.

But the Nikkei should face some downward pressure for technical reasons related to dividend payments, analysts said.

"Tech and exporter shares are expected to face pressure from profit-taking, while bargain-hunting is likely among cyclical shares" such as steelmakers and chemical companies, Okasan said.

The Tokyo market will be open until Thursday before taking a New Year break. Tokyo trading will resume from Tuesday.

Among major shares, Nippon Steel rose 0.57 percent to 1,867.5 yen. Its smaller rival JFE Holdings added 0.55 percent to 1,465 yen. SoftBank Group jumped 2.32 percent to 5,380 yen.

Chipmaker Murata Manufacturing fell 0.80 percent to 9,215 yen. Advantest, a major producer of chip-testing tools, dropped 0.99 percent to 10,950 yen.

Sony Group gave up 0.61 percent to 14,605 yen. Toyota fell 0.59 percent to 2,120.5 yen.

Uniqlo-operator Fast Retailing fell 0.11 percent to 66,070 yen.