Japan’s Nikkei share average slipped more than 1 per cent on the first trading day of 2025 on Monday (Jan 6) as investors sold stocks after the index’s year-end rally, overshadowing gains in chip-related stocks.
The Nikkei fell 1.47 per cent to 39,307.05 after opening 0.13 per cent higher. The index gained 4.4 per cent in December, its biggest monthly gain since February last year.
“The Nikkei fell after rallying at the end of last year when overseas investors were absent. But the index is at a neutral level at around 39,400,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
The Nikkei’s losses will be limited for some time with demand from retail investors adding stocks to their tax-free stock investment programme known as Nisa, or the Nippon Individual Savings Account, Kamada said.
“Whether the index will go up or down depends on overseas stocks’ direction.”
Uniqlo-brand owner Fast Retailing dropped 4.22 per cent to drag the index the most. Staffing agency Recruit Holdings slid 3.32 per cent.
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The broader Topix fell 1.02 per cent to 2,756.38, led by Toyota Motor’s 4.29 per cent decline.
Caution over Toyota’s December gains outweighed optimism for the company’s outlook supported by a weaker yen, Kamada said.
Toyota rose 23 per cent last month, while Topix gained 3.9 per cent.
Nippon Steel snapped five straight sessions of gains to fall 0.75 per cent after US President Joe Biden blocked its proposed US$14.9 billion acquisition of US Steel.
Chip-related shares rose, tracking Wall Street’s strong finish on Friday, with Advantest rising 1.13 per cent and Tokyo Electron gaining 0.72 per cent to become the biggest support for the Nikkei.
Of the Nikkei’s 225 components, 49 stocks rose, 175 fell and one traded flat. REUTERS
