Reuters

Japan’s Nikkei Stock Average Falls after Last Week’s Rally, Seven & I Surges on Buyout Proposal (UPDATE 1)

Yomiuri Shimbun file photo
Tokyo Stock Exchange

Reuters

12:44 JST, November 13, 2024 (updated at 16:45 JST)

TOKYO (Reuters) – Japan’s Nikkei share average ended lower on Wednesday as investors sold stocks in the backdrop of the benchmark hovering near the key level of 40,000 points, while Seven & i Holdings surged on a potential management buyout, capping some losses.

The Nikkei fell 1.66% to close at 38,721.66, while the broader Topix slipped 1.21% to 2,708.42.

Wall Street’s three major indexes closed lower on Tuesday, as investors booked some profits from a post-election rally and waited anxiously for U.S. inflation data due this week.

“Investors were not convinced that the Nikkei would hit 40,000 again anytime soon, so they sold stocks as the index neared that level,” said Fumio Matsumoto, chief strategist at Okasan Securities.

“For the index to rise further, we need to see more appetite from foreigners.”

Last week, the Nikkei hit its highest level since Oct. 15 and posted its biggest weekly gain since September. The benchmark had crossed the 40,000 mark on Oct. 15, touching an intraday high of 40,257.34.

On Wednesday, Uniqlo-brand owner Fast Retailing slipped 1.96% to drag the Nikkei the most.

SoftBank Group gave up its early gains to close 2.89% lower.

Game maker Nexon tanked 17.45% to become the top percentage loser on the Nikkei after cutting its annual net profit forecast for the year to December.

Seven & i Holdings jumped 11.78% to become the biggest support for the Nikkei.

The convenience store operator said on Wednesday it received a buyout proposal from a member of its founding Ito family, following a report that the 7-Eleven owner was considering a management buyout offer worth up to $58 billion.

Tokyo Electron rose 0.88% as the chip-making equipment maker raised its annual operating profit forecast by 8.5%.

Sharp surged 12.84% to become the top gainer on the Nikkei after the mobile phone maker more than quadrupled its half-yearly net profit.

$1 = ¥154.6800