TOKYO: Japan’s Nikkei share average dipped on Friday, as heavyweight technology shares tracked their US peers down, while traders continued to position themselves carefully ahead of the Bank of Japan’s (BOJ) meeting next week.
Although the benchmark index snapped a string of losses in the previous session, the Nikkei was unable to keep up the momentum, closing 0.26% down at 38,707.64. It lost 2.5% this week, its largest weekly drop since early December.
The declines come as tech-related shares, which helped to lift the index above 40,000 points earlier this month, followed US chipmaker Nvidia lower as investors continued to lock in profits. The US index of semiconductors dropped 1.8% overnight.
Japan’s chip-testing equipment maker Advantest, which counts Nvidia among its customers, fell 1.4%, while chip-making equipment giant Tokyo Electron declined 4.9%, pulling the overall index down.
The two index heavyweights were also among some of the worst performers for the week, each losing over 7%.
If tech shares continue to struggle, “it might take some time before the Nikkei reaches 40,000 again,” T&D Asset Management Chief Strategist Hiroshi Namioka said.
Meanwhile, growing speculation that Japan’s central bank could end its negative interest rate policy at its meeting on March 18-19 weighed on the Nikkei index.
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