Japan’s Nikkei begins 2024 with a negative close

The Japanese Nikkei index fell by up to two percent on Thursday in the first trading session of 2024, following the impact of the airplane collision and strong earthquake that hit western Japan earlier this week, which affected the stocks of airlines, construction, and utilities companies.

The stocks of semiconductor-related companies had a significant impact on the Nikkei index on Thursday, following the decline in American technology stocks that had performed poorly in the previous session. In addition, shares of airlines, nuclear power plant operators, and construction companies were affected by the earthquake and collision incident.

The Nikkei index reduced its losses to close down by 0.53 percent at 33,288.29 points.

The earthquake that struck the western coast of Japan during the first days of the new year resulted in the death of at least 81 people, and rescue teams are still continuing their search for survivors.

Hokuriku Electric, the operator of the nuclear power plant, Shika, located near the earthquake center, saw its stock decline by 2.2% after dropping more than eight percent.

Tokyo Electric Power Co. (TEPCO) reduced its losses by seven percent, closing with a decrease of 2.23 percent.
The stock of Advantest and Tokyo Electron, both related to the chip industry, declined by 3.79% and 4.95% respectively. However, the stocks of construction companies Kajima and Taisei rose by approximately 4% each.

After dropping 2 percent, Japan Airlines’ stock closed higher by 0.77 percent. The company’s shares faced a wave of early selling orders following an accident on Tuesday, when one of its planes collided with a Japanese Coast Guard aircraft at Haneda Airport in Tokyo.

Unlike the Nikkei index, the broader Topix index rose by 0.52 percent as investors sought stocks with higher dividend yields following the launch of an amended tax-exempt investment plan this year.