TOKYO: Japan’s Nikkei share average fell as much as 2% on the first trading day of 2024, as airline, construction and energy firms reacted to Tuesday’s aircraft collision and the powerful earthquake that hit western Japan earlier this week.
The Nikkei fell as much as 2% in early trade on Thursday and was last down 1.59% at 32,932.16 at 0108 GMT.
Chip-related stocks were the biggest losers, while the main impact of the quake and collision was on airline and construction stocks.
The broader Topix was down 0.34% at 2,358.28.
“The Nikkei fell due to a sell-off of Japan, as investors sentiment was weighed by the shock of the earthquake,” said Naoki Fujiwara, senior fund manager at Shinkin Asset Management.
Ishikawa prefecture, one of the prefectures hit by the quake on Jan. 1, has confirmed 65 deaths, making the earthquake the deadliest in Japan since at least 2016.
Japan’s Nikkei inches down as automakers skid on yen strength
Chip-related shares, which customarily lead the moves in the Nikkei, fell sharply, with Advantest and Tokyo Electron slumping nearly 5% each. Fujiwara said the declines were also due to a rise in US Treasury yields.
Construction firms were up, with Kajima, Taisei and Obayashi rising more than 4% each.
Meanwhile, Japan Airlines (JAL) faced a glut of early sell orders after Tuesday’s accident involving a collision between JAL and a Coast Guard aircraft at Tokyo’s Haneda airport.
JAL shares were down 0.25%.
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