Tokyo stocks slip slightly after thin trade

TOKYO – Tokyo stocks ended nominally lower today after thin trade, with overseas investors absent for the Christmas holidays.

The benchmark Nikkei 225 index fell 0.04%, or 11.74 points, at 26,656.61, for a weekly loss of 0.40%.

The broader Topix index edged up 0.23%, or 4.14 points, to 1,778.41, for a weekly loss of 0.83%.

“The market was in the state of ‘no selling in quiet times’,” said Okasan Online Securities, referring to a Tokyo market maxim cautioning traders to reject the impulse to dump shares during quiet moments and remain patient until the next opportunity arises.

“The range was so narrow that no one felt shares move,” said the brokerage in a note.

Overnight gains on Wall Street lifted the Tokyo market to open higher.

The momentum, however, was short-lived, and investors searched for fresh news in sluggish trade.

Still, bargain-hunting prevented a sharp fall of the market.

“The news that Britain and the European Union reached a trade deal meant one fewer element of uncertainty, but investors did not see it as a major trading cue,” said SMBC Nikko Securities.

Former prime minister Shinzo Abe faced tough questioning in televised Parliament sessions about a scandal involving payments to his supporters, but that did not move the market either.

The dollar stood at ¥103.56 (RM4.06), against ¥103.70 yesterday in New York.

Shortly before the market opened, the government said Japan’s jobless rate was 2.9% last month, improving from 3.1% in October.

Among the major shares, SoftBank Group lost 3.15% to ¥7,692 following reports that Chinese e-commerce giant Alibaba, for which the Japan-based internet titan serves as a major shareholder, is facing an antitrust probe by Chinese authorities.

Shipping firms fared better.

Nippon Yusen surged 6.50% to ¥2,392 after the firm upgraded its annual earnings outlook. Mitsui O.S.K. lines also roared 6.35% to ¥3,150.

Carmakers, too, enjoyed gains. Toyota rose 0.59% at ¥7,789. Nissan trimmed early gains, but still ended up 0.71% at ¥555.20.

But, Sony lost 1.36% to ¥9,953. Nintendo travelled between positive and negative territory, and ended down 0.09% at ¥64,670. – AFP, December 25, 2020