1. Nikkei 225 Falls on First Trading Day on Fed View, Japan Quake.
- Author
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Aya Wagatsuma
- Subjects
INTEREST rates ,NEW Year - Abstract
On the first trading day of the year, Japan's Nikkei 225 fell the most in two weeks due to concerns that the Federal Reserve will maintain high interest rates, which negatively impacted technology shares. Additionally, a powerful earthquake in the northwest on New Year's Day affected some companies. However, the Topix index saw gains. Tech shares led the decline in the Nikkei 225 index, following the trend of its US counterparts after the Fed meeting minutes did not suggest any immediate easing. Despite this setback, Japan equities had a strong performance in 2023, reaching three-decade highs. The yen's drop supported automakers like Toyota Motor Corp., while shares of companies with operations in the earthquake-affected area declined. Construction companies and shipping firms saw gains due to expectations of increased demand for reconstruction and detours boosting freight costs, respectively. The Nikkei 225's decline on the first trading day is a common occurrence in the past decade, but it does not necessarily predict the market's performance for the rest of the year. The broader Topix index and the MSCI AC Asia Pacific excluding Japan index have shown similar patterns. Overall, the Topix index has risen 26% over the past year, outperforming the MSCI AC Asia Pacific Index. [Extracted from the article]
- Published
- 2024