Japan’s Nikkei Index Recovers Early Losses and Closes Higher, Boosted by Automotive Sector
The Japanese Nikkei index recovered its early losses to close Wednesday’s session higher,
supported by strong gains in the automotive manufacturing sector.
Retail investors dominated trading during the limited activity caused by the Christmas holiday,
which impacted global markets.
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Nikkei
The Nikkei index rose by 0.24% to close at 39,130.43 points, after falling by 0.28% during early trading.
The automotive sector led the gains, climbing 2.9%,
marking the best performance among the 33 sub-sectors on the Tokyo Stock Exchange.
Nissan Motor posted the largest increase, surging by 8.66%.
The broader Topix index also closed higher, gaining 0.24% to end at 2,733.86 points,
bolstered by a 4.57% rise in Toyota Motor’s shares, which played a significant role in lifting the index.
SoftBank
Shares of SoftBank Group, a leading investor in emerging technology companies,
rose by 1.27%, providing additional support to the Nikkei index.
Additionally, shares of Fast Retailing, the parent company of the Uniqlo brand, edged up by 0.26%.
On the other hand, banking stocks declined,
with Mitsubishi UFJ Financial Group falling by 0.44% and Sumitomo Mitsui Financial Group dropping by 0.56%.
According to Fumio Matsumoto, Chief Strategist at Okasan Securities,
the absence of foreign investors during the holiday season made it challenging for the market to find a clear direction.
He added, “Local investors are the sole drivers of trading at the moment,
but they are hesitant to make major decisions in the absence of foreign participants
and without significant movements in major stocks.”
Among the more than 1,600 stocks listed on the Tokyo Stock Exchange’s main market,
52% advanced, 44% declined, and 3% remained unchanged.
Japan’s Nikkei Index Recovers Early Losses and Closes Higher