Japan’s Nikkei closed flat

Japan’s Nikkei index managed to recover most of its early losses and closed relatively stable on Tuesday, March 3, as investors seized the opportunity to buy into declining stocks following a dip from record highs.

The index dipped marginally by 0.03% to 40,097.63 points, significantly paring down its losses which had reached 0.7% earlier in the trading session.

Having enjoyed five consecutive weeks of gains, the Nikkei breached the 40,000-point milestone for the first time just the previous day, marking a remarkable 20% increase since the year began.

Advantest, a company specializing in chip testing equipment, saw its stock drop by 2.64%, exerting notable downward pressure on the Nikkei index. However, Tokyo Electron’s stock managed to reverse its trajectory, closing 0.41% higher and contributing positively to the index’s performance.

In the United States, all three major indices closed lower the preceding night as investors awaited key economic data and Federal Reserve Chairman Jerome Powell’s testimony before Congress.

Meanwhile, the broader Topix index managed to trim its early losses, ending the day 0.5% higher at 2,719.93 points.

Shares of Obayashi surged by 18% after the general contracting company raised its dividend expectations, leading to a 2.96% rise in the construction sector, which emerged as the top-performing sector among the 33 sub-sector indices on the Tokyo Stock Exchange.

Fast Retailing, the parent company of popular clothing brand Uniqlo, saw a modest increase of 0.25% after reporting a 7.2% year-on-year sales growth in its existing stores for February.

Of the 225 components comprising the Nikkei index, 124 stocks saw gains while 99 experienced declines, with two stocks maintaining stability.