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Updated January 16th, 2024 at 09:31 IST

Nikkei to snap six-day winning streak which propelled index to 34-year high

Despite briefly surging to 36,008.23 the previous day—a level unseen since February 1990—Nikkei failed to sustain the momentum, ultimately closing at 35,901.

Reported by: Business Desk
Nikkei
Nikkei | Image:AP Photo
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Nikkei winning streak: Japan's Nikkei share average faced a setback on Tuesday, signalling a potential end to its impressive six-day winning streak, which recently propelled the index to 34-year highs.

As of the midday break, the Nikkei experienced a 0.3 per cent decline, resting at 35,792.06, with a notable contrast of 60 stocks rising against 162 decliners.

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Simultaneously, the broader Topix witnessed a 0.49 per cent downturn, settling at 2,515.29.

Despite briefly surging to 36,008.23 the previous day – a level unseen since February 1990 – the Nikkei failed to sustain the momentum, ultimately closing at 35,901.73.

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Kyle Rodda, senior financial market analyst at Capital.com, noted, "While corporate governance reforms in Japan have been impactful, in my opinion, the market was getting to irrational levels. With technicals this overbought, we are due a correction."

The Nikkei volatility index slightly eased to 21.44.

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Monday saw the inaugural release of a list of companies complying with the Tokyo Stock Exchange's call to disclose capital efficiency improvement plans. Approximately half of the prime section companies responded, although notable entities like Toyota Motor and SoftBank Group were absent from the list.

Shares of SoftBank Group experienced a 0.5 per cent dip, while Toyota Motor shares remained largely unchanged. Toyota revealed plans to manufacture about 10.3 million vehicles globally in 2024, according to a local news report on Monday.

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Among the largest percentage losers on the Nikkei were online gaming firm Nexon, Dai Nippon Printing, and entertainment production company Toho, experiencing declines of 3.73 per cent, 3.29 per cent, and 3.25 per cent, respectively.

In the Topix, only four of the 33 industry groups advanced by midday, with shippers leading the pack, gaining 2.37 per cent.

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(With Reuters inputs.)

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Published January 16th, 2024 at 09:31 IST

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