TOKYO: Japan’s Nikkei share average slipped more than 1% on the first trading day of 2025 on Monday as investors sold stocks after the index’s year-end rally, overshadowing gains in chip-related stocks.
The Nikkei fell 1.47% to 39,307.05 after opening 0.13% higher. The index gained 4.4% in December, its biggest monthly gain since February last year.
“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 known as NISA, or the Nippon Individual Savings Account, Kamada said.
“Whether the index will go up or down depends on overseas stocks’ direction.”
Uniqlo-brand owner Fast Retailing dropped 4.22% to drag the index the most. Staffing agency Recruit Holdings slid 3.32%.
The broader Topix fell 1.02% to 2,756.38, led by Toyota Motor’s 4.29% decline. Caution over Toyota’s December gains outweighed optimism for the company’s outlook supported by a weaker yen, Kamada said.
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