Japan's Nikkei ends flattish on caution over market overheating
18/01/2024 06:59
(Updates closing prices)
TOKYO, Jan 18 (Reuters) - Japan's Nikkei share average
gave up early gains to end almost flat on Thursday, as investors
turned cautious about the recent sharp gains of the index.
The Nikkei .N225 inched down 0.03% to close at 35,466.17,
after rising as much as 0.7% earlier in the session.
The broader Topix .TOPX edged 0.17% lower at 2,492.09.
"Market players became cautious about the recent sharp gains
of the index," said Shuutarou Yasuda, a market analyst at Tokai
Tokyo Research Institute.
The Nikkei has risen 8% since the beginning of this year,
hitting its highest level since February 1990 during the
previous session.
"The Nikkei's momentum was supported by a weak yen. But
investors were also cautious that the yen's decline would not
last long, which prompted them to sell stocks," said Yasuda.
Robot maker Fanuc 6954.T , which has presence in China,
fell 2.63% to weigh on the Nikkei the most.
Declines in Fanuc were a reflection of investor concern
about China's outlook, said Yasuda.
SoftBank Group 9984.T fell 0.74% and video game maker
Nexon 3659.T slid 5.53%.
However, with the yen still remaining weak against the
dollar, Toyota Motor 7203.T rose 2.63% to become the biggest
support for the Topix.
The index for automakers .ITEQP.T rose 1.97% to become the
top performer among the 33 industry sub-indexes on the Tokyo
Stock Exchange.
Tyre makers .IRUBR.T rose 1.64%, with Bridgestone 5108.T
and Toyo Tire 5105.T gaining 1.68% and 4.56%, respectively.
The dollar hovered near a one-month peak versus major peers
on Thursday after robust U.S. retail sales data added to
building expectations the Federal Reserve will not rush to lower
interest rates. FRX/
A softer yen helps exporters as it raises the value of
overseas profits in yen terms when firms repatriate them to
Japan.
(Reporting by Junko Fujita; Editing by Sohini Goswami and
Mrigank Dhaniwala)
((junko.fujita@thomsonreuters.com;))