Reuters

Japan’s Nikkei Stock Average Ends Lower as Traders Book Profits, Assess US Data (Update 1)

Yomiuri Shimbun file photo
The Tokyo Stock Exchange

Reuters

13:34 JST, December 13, 2024 (updated at 16:31 JST, Dec. 13)

TOKYO (Reuters) – Japan’s Nikkei share average ended lower on Friday, as investors locked in profits following a four-session climb after U.S. economic data raised bets of an interest rate cut by the Federal Reserve next week.

The Nikkei .N225 fell 0.95% to 39,470.44, but gained 1.94% for the week. On Thursday, gains propelled the benchmark index to a two-month high.

The broader Topix .TOPX fell 0.95% to 2,746.56 but rose 1.68% for the week.

“The overnight weak finish of overseas markets dragged sentiment lower, prompting investors to sell stocks for profit-booking,” said Takehiko Masuzawa, trading head at Phillip Securities Japan.

“The market wanted to adjust their positions ahead of the weekend.”

The Nikkei crossed the key 40,000 level for the first time since Oct. 15 on Thursday.

Wall Street pulled back overnight, as investors evaluated key economic indicators ahead of the Fed meeting next week.

A U.S. Labor Department report on Thursday showed producer prices rose 0.4% on a monthly basis in November, compared with estimates of a 0.2% climb, as per economists polled by Reuters.

Uniqlo brand owner Fast Retailing 9983.T lost 2.26% to drag the Nikkei the most.

Chip-making equipment maker Tokyo Electron 8035.Tshed 3.11%, tracking U.S. chipmakers’ .SOX 0.91% drop. Silicon wafer maker Shin-Etsu Chemical 4063.T lost 2.86%.

Oji Holdings3861.T surged 11.23% to become the top percentage gainer on the Nikkei after the packaging maker announced share buyback.

The healthcare equipment maker Omron 6645.T fell 5.63% to become the biggest percentage loser in the Nikkei. Heavy machinery maker IHI 7013.T lost 5.18%.

All but three of the Tokyo Stock Exchange’s (TSE) 33 industry sub-indexes declined.

The pulp and paper makers index .IPAPR.T climbed 3.75% and the shippers .ISHIP.T added 1.43%.

Of the 1,644 stocks in the TSE’s prime market, 32% advanced, 64% fell, while 3% traded flat.