Japan's Benchmark Indexes Dropped 1%, Toyota's U.S. Sales Struggled In December

Akira Ito
06 Jan, 2025
Tokyo

Stock market indexes in Tokyo closed down in Monday's trading after investors returned from a weeklong holiday. 

The Nikkei 225 stock average decreased 1.5%, and the broader TOPIX index dropped 1% as investors worried about the rate path and domestic political uncertainties. 

The Nikkei 225 stock average advanced 19.2%, and the TOPIX index gained 17.7%, and both indexes advanced for the second year in a row. 

Market sentiment remained cautious on the first trading session of 2025 amid worries about the stability of the domestic minority government, a potential increase in U.S. tariffs on Japanese goods, and rising competition from Chinese electric vehicle makers.

 

Japan Stock Movers 

The Nikkei 225 Stock Average declined 1.5% to 39,307.08, and the broader TOPIX index fell 1% to 2,755.44. 

Technology stocks, financial services providers, and retailers lacked momentum in Tokyo trading. 

Tokyo Electron Ltd. increased 0.5% to ¥24,305.0, Advantest Corp. added 1% to ¥24,305.0, and Screen Holdings advanced 1.3% to ¥9,611.0. 

Toyota Motor declined 4.4% to ¥3,008.0 after the vehicle maker reported a decline in sales in the final quarter in the U.S. 

The company reported fourth quarter sales of 603,104 vehicles, a decrease of 2.7% on a volume basis and a decrease of 5.2% on a daily sales rate basis compared to the fourth quarter of 2023. 

December 2024 U.S. sales totaled 209,953 vehicles, a decrease of 7.1% on a volume basis and a decrease of 3.4% on a DSR basis compared to December 2023.

Toyota Motor North America sales increased 3.7% to 2,332,623 vehicles on a volume basis and an increase of 3.1% on a daily selling rate, or DSR basis, compared to 2023.

Lexus division reported its best-ever annual sales in its 35-year history. 

Nippon Steel Corp. declined 0.4% to ¥3,160.0 after U.S. President Joe Biden blocked the company's $15 billion deal to acquire the Pittsburgh-based U.S. Steel. 

Nippon Steel president Tadashi Imai said the company is reviewing its options, including suing the U.S. government for blocking its acquisition. 

Fast Retailing Co. Ltd. dropped 4.2% to ¥51,560.0, and Seven I Holdings declined 1.9% to ¥2,439.50 ahead of their earnings reports.