Nikkei holds steady despite Fast Retailing and Nissan declines

Nikkei ends flat: The Nikkei closed little change on Tuesday, as gains in chip-related stocks managed to offset declines in heavyweights such as Fast Retailing, the parent company of Uniqlo, and Nissan Motor.

The Nikkei's resilience was notably supported by the semiconductor sector, spearheaded by chipmaking equipment giant Tokyo Electron, buoyed by a record surge in its US counterpart Nvidia.

However, Nissan shares slumped nearly 4 per cent following an update to its medium-term business plan that failed to meet investor expectations.

Fast Retailing witnessed a decline of 1.63 per cent, extending its retreat from the record high seen on Friday.

The Nikkei closed trading day marginally lower, down 0.04 per cent at 40,398.03, while the broader Topix managed to edge up by 0.11 per cent.

After hitting an all-time peak of 41,087.75 on Friday, the Nikkei saw a 1.16 per cent slide on Monday. Despite this, the index has rallied more than 20 per cent this year.

Kazuo Kamitani, an equity strategist at Nomura Securities, noted the support from the upward trend of the five-day moving average, suggesting that a downturn for the Nikkei could be challenging to materialize.

However, he highlighted the market's lack of clear direction amidst a scarcity of fresh trading cues.

Tokyo Electron saw a modest increase of 0.54 per cent and emerged as the top gainer in index points due to its substantial weighting. Following closely was silicon producer Shin-Etsu Chemical, advancing 1.45 per cent, and chipmaking equipment manufacturer Screen Holdings, which surged over 4 per cent.

Nvidia, renowned for its role in the artificial intelligence sector, achieved another all-time closing high on Monday, extending its winning streak for a sixth consecutive session.

In other developments, BlackRock raised its overweight position on Japanese equities, citing the Bank of Japan's (BOJ) cautious stance despite its recent exit from negative interest rates.

"We anticipate the BOJ to proceed cautiously and avoid disrupting the return of modest inflation," BlackRock stated in a note.

(With Reuters inputs)