Japan’s Nikkei Snaps 4-day Winning Run amid Yen’s Strength
16:20 JST, December 28, 2023
TOKYO (Reuters) – Japan’s Nikkei share average snapped a four-session winning run on Thursday, as investors sold stocks after sharp gains in the previous session, while a stronger yen against the U.S. dollar also weighed on market sentiment.
The Nikkei fell 0.42% to 33,539.62 after a more than 1% jump in the previous session. The broader Topix edged down 0.14% to 2,362.02.
“The Nikkei declined as investors sold stocks after its sharp gains in the previous session,” said Jun Morita, general manager of the research department at Chibagin Asset Management.
“Also, investors could not find reasons for buying stocks amid the yen’s rise against the dollar.”
The yen JPY=EBS strengthened against the dollar, inching closer to a five-month peak of 140.95 it touched earlier this month, as the greenback nursed steep losses against major currencies.
A stronger yen tends to hurt exporter shares as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan.
Uniqlo clothing shop operator Fast Retailing lost 0.73% to drag the Nikkei the most. Chip-testing equipment maker Advantest and chip-making equipment maker Tokyo Electron lost 2.22% and 0.6%, respectively.
Toyota Motor slipped 1.05%, becoming the biggest drag on the Topix.
Shipping firms lost 3.44% and were the worst performers among the Tokyo Stock Exchange’s 33 industry sub-indexes.
Bucking the trend, DIC jumped 5.42% after activist fund Oasis Management emerged as a shareholder of the printing materials maker with a 6.9% stake.
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