Japan’s Nikkei share average retreated on the final trading day of 2024, pulling back from a five-month high reached in the previous session, as investors opted to lock in profits following a strong year for the index.
The Nikkei closed down 0.96% at 39,894.54, after opening slightly higher with a gain of 0.11%. On Friday, the index had surged to 40,281.16, its highest closing level in five months, marking a three-session winning streak. Despite the pullback, the Nikkei finished 2024 with a strong 19.22% gain, supported by a weaker yen and the Bank of Japan’s low-interest rate policy. In comparison, the index had gained 28% in 2023.
The broader Topix index also saw a decline, falling 0.6% to close at 2,784.92. Japanese markets will be closed starting tomorrow for the New Year holidays and are scheduled to reopen on January 6, 2025.
Several major stocks weighed on the Nikkei’s performance today. Fast Retailing, the owner of Uniqlo, dropped 1.59%, contributing most to the index’s decline. Advantest, a maker of chip-testing equipment, saw a 2.6% drop, while Nissan Motor slipped 5.73%. Despite a 33.7% surge this month on the back of merger speculation with Honda Motor, Nissan ended the year down 13.39%.
On the positive side, some companies saw significant gains in 2024. Fujikura, a wire cabling manufacturer for data centers, was one of the top performers, growing six-fold over the year. Lasertec, which produces inspection equipment for the chip-making industry, was the worst performer of the year, with a dramatic 59% decline.
Overall, while the Nikkei closed the year with strong gains, profit-taking on the last day reflected caution ahead of the New Year holidays and the start of 2025. Investors will now look ahead to the upcoming year, with attention focused on global economic conditions and the Bank of Japan’s policies.
