TOKYO: Japan’s Nikkei share average fell more than 2% to a one-month low on Tuesday as technology stocks tracked the overnight declines on Wall Street.
The Nikkei was down 2.11% to 38,405.58, its lowest since March 14, by the midday break.
The broader Topix had fallen 1.82% to 2,703.20.
“Japanese stocks tracked overnight US equities lower,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
US stocks closed sharply lower due to a jump in Treasury yields and concerns about rising geopolitical tensions between Iran and Israel.
“The yen’s weakness did not help lift appetite for local stocks because the yen kept its momentum against other currencies. It is just that the dollar was strong against other currencies,” Yasuda said.
The dollar stood just off its highest since early November on Tuesday, with the yen languishing at its lowest level since 1990 following hotter-than-expected US retail sales.
In Japan, chip-making equipment maker Tokyo Electron slid 4.15% to become the biggest drag on the Nikkei, while chip-testing equipment maker Advantest lost 4.08%. Uniqlo-brand owner Fast Retailing fell 2.45%.
J.Front Retailing lost 6.52% after the department store operator cut its annual profit forecast.
Its peer Isetan Mitsukoshi Holdings lost 7.53% to become the biggest percentage loser on the Nikkei.
Japan’s Nikkei climbs as chip shares gain, softer yen lifts sentiment
Bucking the trend, Toho surged 6.92% after the cinema operator posted a 35.5% rise in its annual net profit and announced a share buyback program.
Nidec jumped 6.17% after the motor maker announced a tenfold production capacity expansion in Thailand to make water-cooling modules for AI servers.
Of the 225 components on the Nikkei, 21 stocks rose and 204 fell.
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