Japan’s Nikkei index recovered most of its early losses to close stable on Tuesday, as investors bought declining stocks after the index fell from a record high level.
The index fell by 0.03 percent to 40,097.63 points, paring most of its losses, which amounted to 0.7 percent earlier in the session.
“Investors bought back declining stocks,” said Naoki Fujiwara, chief fund manager at Shinkin Asset Management. “In general, the market was stable. The Nikkei index fell today only because the stocks that raised the index fell.”
After five consecutive weeks of achieving gains, the Nikkei index broke the 40,000-point level for the first time on Monday and has risen by about 20 percent since the beginning of the year.
Advantest shares, which manufacture chip testing equipment, fell by 2.64 percent and had the most influence on the Nikkei index, while Tokyo Electron shares reversed course to close up by 0.41 percent and became the largest supporter of the index.
“Investors sold chip-related stocks, which were heavily bought during the rally after Wall Street fell overnight,” said John Morita, managing director of research at Chipagen Asset Management.
The three major indices in the United States closed lower last night as investors awaited economic data and Federal Reserve Chairman Jerome Powell’s testimony before Congress.
The broader Topix index trimmed its early losses to close 0.5 percent higher at 2,719.93 points.
Obayashi shares rose 18 percent after the general contracting company raised its dividend expectations.
The construction sector rose 2.96 percent, becoming the best performer among the 33 sub-sector indices on the Tokyo Stock Exchange.
Fast Retailing, which owns clothing brand Uniqlo, rose 0.25 percent after it said sales at its existing stores in February rose 7.2 percent from a year ago.
Of the 225 components of the Nikkei index, 124 stocks rose and 99 fell, while two stocks stabilized.
2024-03-05 08:37:22
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