Japan's Nikkei 225 index dropped by 124 points, or 0.3%, to close at 39,037 on Tuesday, reversing a 1.2% gain from the previous session.
Nikkei 225 trims early declines
Market sentiment soured following a US government panel's inability on Monday to agree on potential national security risks posed by Nippon Steel's near USD 15 billion proposed acquisition of US Steel. The decision now rests with President Biden, who opposes the deal. Declines were notable in the communications, commercial services, and consumer services sectors, with sharp losses in Fujitsu (-2.5%), TDK Corp. (-2.2%), Recruit Holdings (-1.7%), and Fast Retailing (-0.6%).
Honda jumped by over 12%
However, the index trimmed earlier losses as Honda Motor surged 12.2% after announcing a JPY 1.1 trillion share buyback. Meanwhile, Nissan gained 6% after confirming discussions with Honda about a potential business integration. The broader Topix Index remained steady, closing at 2,727. Unlike many global markets, Japanese exchanges will remain open all week, with the last trading day of 2024 scheduled for December 30.
