Japan’s Nikkei Ends Lower on Caution Ahead of US Inflation Data

Reuters

16:02 JST, November 27, 2023

TOKYO (Reuters) – Japan’s Nikkei share average ended lower on Monday as investors turned cautious ahead of U.S. inflation data, prompting them to sell stocks to lock in profits.

The Nikkei index fell 0.53% to close at 33,447.67. The index opened higher and rose as much as 0.6% earlier in the session before surrendering the gains as investors sold stocks to lock in profits.

“There were little market moving cues in the U.S. or Japan and investors’ attention was on U.S. PCE reading later in the week,” said Hirokazu Kabeya, chief strategist at Daiwa Securities.

“And investors turned cautions and sold stocks to lock in profits.”

The broader Topix .TOPX slipped 0.38% to 2,381.76.

U.S. stocks ended little changed in holiday-shortened trading on Friday, with low volume and conviction, as investors watched the start of the seasonal shopping season for signs of consumer resilience.

Among individual stocks, technology investor SoftBank Group fell 1.69% to drag the Nikkei the most. Ceramics maker Kyocera fell 1.9%.

Mitsubishi Heavy Industries slipped 5.01% to become the worst performer in terms of percentage on the Nikkei.

Taisho Pharmaceutical rose 10% to its daily limit high of 6,545 yen, after untraded most of the day with a glut of buy orders as the drug maker announced a management buyout at 8,620 yen per share, which would take the company private.

Cosmetic maker Kao rose 2.42% to become the top percentage gainer on the Nikkei, followed by Mitsubishi UFJ Financial Group which rose 2.29%.