Japan’s Nikkei Stock Average Falls as Tech Stocks Track Wall Street Lower (Update 1)

Reuters

12:18 JST, December 29, 2025 (updated at 17:20 JST)

TOKYO, Dec 29 (Reuters) – Japan’s Nikkei share average ended lower on Monday after two sessions of gains, as technology stocks tracked Wall Street’s weak finish last week and some big stocks traded ex-dividend.

The Nikkei fell 0.44% to 50,526.92, while the broader Topix inched 0.1% higher to 3,426.52.

All three major U.S. stock indexes closed nominally lower on Friday, snapping a five-session rally.

In Japan, chip-related heavyweights fell, with Advantest and Tokyo Electron losing 2.3% and 0.29%, respectively.

Air conditioning maker Daikin Industries fell 2.02%.

The Nikkei slipped as some large stocks with higher dividend payouts went ex-dividend, said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute.

Japan Tobacco fell 1.6%, while tire maker Bridgestone slipped 1.23%. Their financial year closes in December.

The Topix’s rubber maker index slipped 1.4% to become the worst performer among the 33 industry sub-indexes.

Banks rose as the Bank of Japan’s summary of opinions showed that policymakers debated the need to keep raising interest rates even after the hike in December.

Mitsubishi UFJ Financial Group gained 0.44%, while Sumitomo Mitsui Financial Group and Mizuho Financial Group rose 0.39% and 0.71%, respectively.

The Topix’s value share index edged up 0.36%, while the growth share index slipped 0.18%.

Value shares, which pay higher dividends than growth stocks, tend to rise in January as retail investors buy those stocks to include in their Nippon Individual Savings Account (NISA) program at the start of the year, said Suzuki.

The NISA is expanding as it exempts retail investors from paying capital gains taxes on stock holdings.

Of the more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 61% rose, 34% fell and 2% traded flat.