In a subdued Christmas trading session, Tokyo stocks made modest gains on Monday, taking cues from the positive performance of US tech shares in the previous week. The benchmark Nikkei 225 index rose by 0.26%, or 84.98 points, reaching 33,254.03, while the broader Topix index inched up by 0.04%, or 0.97 points, closing at 2,337.40.
Despite the seasonal slowdown leading into Christmas, global investors maintained a positive outlook, anticipating a “soft landing” for the US economy and speculating on potential rate cuts by the Federal Reserve in the coming year, according to Nomura Securities.
While many markets in Asia were closed on Monday for the Christmas holiday, trading activity suggested a general confidence in the market. Nomura Securities noted that some investors may be considering an opportune time to sell stocks, given the recent steady gains in US shares.
High-tech shares saw increased interest following last week’s Nasdaq advance, and market participants welcomed the relative calm in the forex market, contributing to the positive sentiment, as mentioned by IwaiCosmo Securities.
“The market opened higher in the morning, but it gradually came to face selling pressure as investors sold their shares to adjust positions with only a limited number of participants,” said IwaiCosmo Securities.
Shanghai shares played a supporting role for Tokyo stocks, with the Shanghai Composite Index reversing earlier losses to close up by 0.14%, or 4.04 points, at 2,918.81.
Among notable Tokyo stocks, Toyota gained 0.83% at 2,537 yen, SoftBank Group rose 1.25% to 6,099 yen, and Sony Group added 1.04% at 13,120 yen. Nintendo, however, experienced a slight dip, falling 0.17% to 6,934 yen, and Mitsubishi UFJ Financial Group lost 0.74% at 1,207 yen.
Energy developer Inpex saw a 0.29% rise to 1,934 yen, while Uniqlo operator Fast Retailing firmed by 0.62% at 35,830 yen. The overall trading atmosphere reflected a cautious optimism, aligning with the holiday season’s quieter market conditions.
