Shareholders are cheering the record share price of Fast Retailing Co., the operator of casual fashion giant Uniqlo that¡¯s just become the most valuable apparel retailer in the world.
But some other market observers are sounding notes of caution over the stock¡¯s ever-increasing influence on the 225-issue Nikkei average of the Tokyo Stock Exchange, as technical changes caused by its recent highs raise its already-outsized impact on the blue-chip gauge.
A fivefold increase in Fast Retailing¡¯s tick size ¡ª the minimum amount by which the stock can move up or down ¡ª and a surge in its weighting in the index mean the Nikkei¡¯s rise is increasingly intertwined with that of the casual clothing firm, even as Japanese stocks look to test record bubble-era highs.
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