Japan's Nikkei ends higher on US rate cut prospects, shippers fall

Mitsubishi Chemical

25/12/2023 07:04

(Updates with closing prices)
       TOKYO, Dec 25 (Reuters) - Japan's Nikkei share average
ended higher on Monday, underpinned by prospects for U.S. rate
cuts that also lifted the S&P 500 and Nasdaq late last week,
although shipping shares fell on expectations a resumption in
Red Sea shipping would weigh on freight rates.
    The Nikkei  .N225  rose 0.26% to close at 33,254.03, while
the broader Topix  .TOPX  inched up 0.04% to 2,337.40.
        "The gains were limited as investors hesitated to make
active bets with the close of overseas markets on the Christmas
holiday," said Takehiko Masuzawa, trading head at Phillip
Securities Japan.
    U.S. stocks gyrated to a mixed close on Friday, with the 
Nasdaq  .IXIC  joining the S&P 500  .SPX  in positive territory,
while the Dow  .DJI  finished nominally lower as the markets
digested cooler-than-expected inflation data, which supported
the possibility of Federal Reserve interest rate cuts in the new
year.  .N 
    "While the markets were mixed, the only obvious trend was
the decline in shipping firms," Masuzasa said.  
    He said their shares were driven lower by news on Sunday
that Denmark's Maersk  MAERSKb.CO  is preparing to resume
shipping operations in the Red Sea and the Gulf of Aden. 
    Shares of Japanese shippers  .ISHIP.T  surged 17% last week
on expectations of rising freight rates, as global shipping
companies were sailing around the Cape of Good Hope to avoid
Houthi attacks in the Red Sea.     
    The shipping shares index fell 6.51% on Monday and was the
worst-performing sector among the Tokyo Stock Exchange's 33
industry sub-indexes. 
    Kawasaki Kisen  9107.T  fell 8.6% to become the worst
performer on the Nikkei. Nippon Yusen  9101.T  and Mitsui OSK
Lines  9104.T  fell 6.54% and 5.62%, respectively.
        Fast Retailing rose 0.62%, giving the biggest boost to
the Nikkei among individual shares. Chipmaking equipment
manufacturer Tokyo Electron  8035.T  rose 0.48%. 
    Chip-testing equipment maker Advantest  6857.T  fell 1.49%
and was the biggest drag on the Nikkei.
    Shiseido  4911.T  lost 3.22% after the cosmetics maker
announced an acquisition of Dr. Dennis Gross Skincare.
    Mitsubishi Chemical Group  4188.T  lost 3.64% after the
maker of semiconductor materials named a new president. 

 (Reporting by Junko Fujita; Editing by Edmund Klamann and Jamie
Freed)
 ((junko.fujita@thomsonreuters.com;))