VT Markets APP

    Trade CFDs on FX, Gold and more

    Get

    Nikkei Dips in Holiday Trade as Tech Slumps

    December 24, 2024

    Key Points:

    • Nikkei slips 0.3% to 39,036.85 in thin holiday trading.
    • Tech and electronics weigh on broader sentiment, with Rakuten down 1.6% and Fujitsu down 2.5%.
    • Honda Motor jumps 12% after announcing a $7 billion share buyback and a 2026 merger plan with Nissan.

    Japanese equities finished lower on light holiday volume, as technology and electronics stocks pulled the broader market into negative territory. Despite the Nikkei Stock Average ending down 0.3% at 39,036.85, it briefly showed an intraday uptick, as highlighted by the chart data below.

    Japanese equities finished the session lower in subdued holiday volumes, with technology and electronics stocks dragging the Nikkei. Rakuten Group slid 1.6%, reflecting cautious investor appetite for internet services amid global tech headwinds. Fujitsu lost 2.5%, adding pressure to the sector.

    Despite the broader weakness, Honda Motor soared after unveiling a plan to repurchase $7 billion of its own shares, along with a move to merge with Nissan Motor in 2026. This dramatic shift sparked buying interest, briefly lifting sentiment across the auto segment.

    Technical Analysis

    Picture: Nikkei225 settles near 39,135, pausing its advance while traders await fresh economic cues, as seen on the VT Markets app.

    The Nikkei225 advanced slightly, pausing near the upper 39,000 range. Short-term moving averages (MA5, MA10, MA30) on the 15-minute chart hover close to the current price, signalling that bullish momentum has softened but not reversed.

    The MACD (12,26,9) lines are close to the centre line, indicating neutral conditions after the previous run-up to 39,365.65

    A Fruitless Yen-Deavour?

    In currency markets, USD/JPY held near 157.02, marginally lower than 157.14 at Monday’s US close. Investors continue to monitor any escalation in U.S.-China trade tensions and conflicts in the Middle East, both of which shape global risk perceptions.

    Japanese government bonds edged slightly down in price, with the 10-year JGB yield rising half a basis point to 1.065%, as traders weighed potential implications of tighter monetary policies overseas and domestic economic signals.

    Create your live VT Markets account and start trading now.