2024-04-01 09:26:07
Japan’s Nikkei index closed at its lowest level in two weeks on Monday, falling below the level of 40,000 points, as traders tended to sell stocks to take profits on the first day of the country’s new fiscal year.
The Nikkei index fell 1.4% to 39,803.09 points, its lowest closing level since March 18, after opening 0.7% higher. The broader Topix index fell 1.71% to 2,721.22 points.
“Institutional investors usually sell stocks to take profits on the first day of the fiscal year,” said Shoichi Arisawa, general manager of investment research at Aiwaicosmo Securities.
The Nikkei index rose 19% in 2024 and exceeded the level of 40,000 points to reach record levels in March, after a steady rise of 54% since early 2023, and chip-related shares Tokyo Electron and Advantest lost 3.21% and 4.96%, respectively, while Toyota Motor shares declined. 4.03%.
A survey conducted by the Bank of Japan showed that optimism in the Japanese services sector rose to the highest level in 33 years in the first quarter thanks to the tourism boom and increased profits from rising prices.
The survey also showed that major companies plan to increase their capital spending by 4.0% in the fiscal year that lasts until March 2025, after an expected increase of 11.5% last fiscal year. Strategic analysts said that the Bank of Japan survey was not a major driver of the market because its results fell within their expectations.
Shigetoshi Kamada, general manager of research at Tachibana Securities, said: The currency market was stable, and did not provide significant signals for local stocks.
The yen touched its lowest level in 34 years against the dollar at 151.975 yen on Wednesday, and reached 151.35 per dollar in the latest trading.
Shares of heavy machinery manufacturing companies fell, with shares of Kawasaki Heavy Industries and Mitsubishi Heavy Industries falling 6.36% and 4.5%, respectively, and Nomura Holdings shares falling 5.41%.
As for the winners, the stock of the watch manufacturer Citizen Watch jumped 5.05%, and the stock of the calculator maker Casio Computer gained 4.94%, becoming the best performers in the index.
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