Updated March 25th, 2024 at 13:40 IST

Nikkei share average retreats as profit-booking ends winning streak

Closing 1.16% lower at 40,414.12, the Nikkei saw only 30 of its 225 constituents advancing, while 192 declined.

Reported by: Business Desk
Nikkei | Image:Shutterstock
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Nikkei share average: The Nikkei share average of Japan concluded Monday's trading session on a downward trajectory, succumbing to profit-taking after a four-day winning streak following last week's central bank decisions. The retreat marked a departure from the index's recent surge, which saw it breach the historic 41,000 level for the first time ever.

Closing 1.16 per cent lower at 40,414.12, the Nikkei saw only 30 of its 225 constituents advancing, while 192 declined. Similarly, the broader Topix index experienced a decline of 1.26 per cent, closing at 2,777.64 on Monday.

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According to Hiroshi Namioka, chief strategist at T&D Asset Management, the market's retreat reflects a temporary pause following its recent ascent, with technical factors likely to exert pressure on the index in the coming week.

The day's losses were widespread, impacting several heavyweight constituents of the Nikkei. Chipmaking equipment giant Tokyo Electron saw a decline of 1.6 per cent, while Fast Retailing, the parent company of Uniqlo, lost 0.6 per cent. Additionally, staffing agency Recruit Holdings witnessed a decline of 3.6 per cent.

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Even Japanese companies with higher overseas sales were not immune to the downturn, despite the yen hovering around 151.32 per dollar. Namioka suggested that the currency's weakness may have reached its peak, dampening the recent rally in export-related shares.

Sony Group experienced a drop of about 3 per cent, while Toyota Motor saw a decline of 1.1 per cent. Similarly, automakers Honda and Nissan faced losses of 2.2 per cent and 2.1 per cent, respectively.

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(With Reuters inputs.)

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Published March 25th, 2024 at 13:40 IST