financetom
World
financetom
/
World
/
Japan's Nikkei falls amid caution ahead of central bank decisions; auto shares shine
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Japan's Nikkei falls amid caution ahead of central bank decisions; auto shares shine
Dec 18, 2024 12:01 AM

(Updates with closing prices)

TOKYO, Dec 18 (Reuters) - Japan's Nikkei share average

fell for a fourth session on Wednesday as investors remained

cautious ahead of central bank decisions in the U.S. and Japan,

while report of a Honda-Nissan tie-up boosted auto shares.

The Nikkei ended 0.72% lower at 39,081.71.

The broader Topix erased early gains to fall 0.31%

to 2,719.87, even as the auto sector rose 1.5% on

expectations for an industry reorganization.

Honda Motor ( HMC ) and Nissan Motor ( NSANF ) are in talks

to deepen ties, two people said, including a possible merger,

the clearest sign yet of how Japan's once seemingly unbeatable

auto industry is being reshaped by challenges from Tesla and

Chinese rivals.

"The report raised expectations that Japan's automakers will

start a consolidation and investors were prompted to buy auto

shares," said Fumio Matsumoto, chief strategist at Okasan

Securities.

"The market did not expect the closer tie-up between Nissan ( NSANF )

and Honda ( HMC ) would take place this early. Now, investors expect

less competitive automakers, such as Mazda ( MZDAF ), may be a target of

an acquisition."

Nissan ( NSANF ) surged 23.7% to a daily limit, while Honda ( HMC ) fell 3%.

Mitsubishi Motors ( MMTOF ) jumped 19.65% and Mazda Motor ( MZDAF )

gained 5.54%.

U.S. stocks retreated overnight and the Dow dropped for a

ninth straight session as investors exercised caution ahead of

the Federal Reserve's last policy announcement of the year after

economic data indicated consumer spending remained solid.

The Bank of Japan (BOJ) will conclude its policy meeting

on Thursday and announce its decision just hours after the Fed's

expected rate cut.

Uniqlo brand owner Fast Retailing ( FRCOF ) slipped 1.76% to

drag the Nikkei the most. Technology start-up investor SoftBank

Group lost 4%.

Okasan's Matsumoto said the Nikkei's gains would be limited

toward the end of the year, with foreign investors going on

holidays.

"But losses will be limited as well, because of the

share buybacks by Japanese firms."

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
EMERGING MARKETS-Latam FX eyes strong monthly gain on metals boost
EMERGING MARKETS-Latam FX eyes strong monthly gain on metals boost
Oct 2, 2024
* Colombia cbank board faces dilemma over magnitude of rate cut * Brazil private economists forecast two 50-bps hikes this year * Chile's president proposes 2.7% spending increase in 2025 budget * Latam FX down 0.4%, stocks down 0.6% By Ankika Biswas Sept 30 (Reuters) - Colombia's peso rose in line with most of its regional peers on Monday, ahead...
GRAPHIC-Yen thrills and oil spills in Q3's market rollercoaster
GRAPHIC-Yen thrills and oil spills in Q3's market rollercoaster
Oct 2, 2024
* Q3 dominated by surges in Japanese yen, Chinese stocks * Oil falls 17%, central banks cut rates * U.S. election expected to bring more volatility * Gold thrives on heightened uncertainty By Marc Jones LONDON, Sept 30 (Reuters) - What a wild quarter for the markets! The yen's strongest run since the 2008 global crash, central banks swivelling at...
European Equities Traded in the US as American Depositary Receipts Open Week Lower
European Equities Traded in the US as American Depositary Receipts Open Week Lower
Oct 2, 2024
11:15 AM EDT, 09/30/2024 (MT Newswires) -- European equities traded in the US as American depositary receipts kicked off the week lower late Monday morning, declining 0.5% to 1,435.36 on the S&P Europe Select ADR Index. From continental Europe, the gainers were led by semiconductor company Sequans Communications ( SQNS ) and biopharmaceutical company Genfit ( GNFT ) , which...
Bitcoin Tumbles Back Below $64K as Surprise Japan Prime Minister Choice Triggers 5% Plunge in Nikkei
Bitcoin Tumbles Back Below $64K as Surprise Japan Prime Minister Choice Triggers 5% Plunge in Nikkei
Oct 2, 2024
A surprise choice as Japan's next prime minister renewed fears of BOJ tightening, sending markets lower.Overbought conditions left bitcoin vulnerable to a selloff.After a quick roughly 14% run higher following the U.S. Federal Reserve's 50 basis point rate cut nearly two weeks ago, conditions seemed ripe for something to set off a sizable selloff in bitcoin {{BTC}}, and the selection...
Copyright 2023-2024 - www.financetom.com All Rights Reserved