Japan’s Nikkei Stock Average Ends Lower on Profit Booking after Sharp Gains (Update 2)
11:18 JST, November 7, 2024 (updated at 16:20 JST)
TOKYO (Reuters) – Japan’s Nikkei share average erased its early rise to end lower on Thursday, as investors booked profits following the sharp gains in the previous session.
The Nikkei fell 0.25% to close at 39,381.41, after rising 2.6% on Wednesday to a three-week closing high.
The benchmark rose as much as 1% earlier in the session, tracking Wall Street’s record close overnight after Republican Donald Trump won the 2024 U.S. presidential election.
Trump’s victory unleashed a massive rally in the dollar, drove stocks to record highs and punished bond prices.
“Nikkei’s reversal indicated that the sharp gains in the previous session were led by short-term investors who bet on a rally on Trump trades,” said Takehiko Masuzawa, trading head at Phillip Securities Japan.
“They quickly sold stocks to book profits.”
Uniqlo-brand owner Fast Retailing fell 3.3% to become the biggest drag on the Nikkei. Chip-making equipment maker Tokyo Electron lost 1.73%.
Home interior goods maker and retailer Nitori Holdings , which is sensitive to the yen’s move, slipped 6.61%.
Railway operator Keio surged 17.67% and construction firm Taisei jumped 13.34% after they announced a share buyback.
The broader Topix ended 1% higher at 2,743.08, with Toyota Motor up 2.89%.
Financials gained as bond yields rose, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group up 3% and 2.59%, respectively.
Japan’s 10-year government bond yield crossed 1% for the first time in over three months.
The U.S$. rose to ¥154.7 overnight, its highest level sine July 31, before last tadingi down 0.53% at 153.8.
Insurer Tokio Marine Holdings gained 2.77%.
Of more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 76% rose and 21% fell, while 1% ended flat.
"News Services" POPULAR ARTICLE
-
New Rules Drive Japanese Trucking Sector to the Brink
-
South Korea’s Han Kang Wins 2024 Nobel Literature Prize
-
Acemoglu, Johnson and Robinson Win 2024 Nobel Economics Prize
-
Nikkei Closes Lower as Chip Stocks Drag, Investors Focus on Earnings (Update 1)
-
G-Shock Watchmaker Casio Delays Earnings Release Due to Ransomware Attack
JN ACCESS RANKING
- Asukayama Monorail in Tokyo: Free to Ride!
- Japan Trying to Draw Digital Nomads, Who Are Seen as Beneficial to Economy, Society
- JICA Employee Suspected of Leaking Info on ODA Project in Manila; Bidding for Railway Renovation May Have Been Impacted
- G20 Sees Soft Landing for Global Economy; Leaders Pledge to Resist Protectionism as Trump Calls for Imported Goods Flat Tariff
- Japanese Automakers Team Up on Software Development; Aim to Compete with U.S., China in SDV Market