TOKYO: Japan’s Nikkei share average dropped for a third straight day on Wednesday to end below 38,000 points for the first time in two months as tensions in the Middle East weighed on sentiment and investors took profit before the earnings season heats up.
The Nikkei finished down 1.3% at 37,961.80, its lowest closing level since Feb. 14, and was on track for its biggest weekly loss since December 2022.
The broader Topix declined 1.3% to 2663.15.
The benchmark index opened higher but failed to hold on to its gains as caution reigned, like it has through the week, due to the uncertainty over how the situation in the Middle East will unfold.
At the same time, investors appeared to be trading carefully as Japan’s earning season kicks into gear, analysts said, with key companies such as chip-testing equipment maker Advantest due to report next week.
“We see some market weakness this season” as companies publish guidance for the new fiscal year, leading to some profit-taking ahead of earnings, said Kenji Abe, an analyst at Daiwa Securities.
US stocks were mixed overnight as Treasury yields continued to climb, giving the Nikkei little support.
Federal Reserve Chair Jerome Powell said on Tuesday that monetary policy needs to be restrictive for longer, further dashing hopes of significant interest rate cuts this year.
Comments
Comments are closed.