TOKYO: Japanese equities slumped on Wednesday under the weight of a strengthening yen, sending the Nikkei share average to its first loss in four sessions despite robust gains for chip stocks.
The tech-heavy Nikkei ended the day down 0.1 percent at 50,344.10, reversing an earlier advance.
The broader Topix slid 0.5 percent to 3,407.37.
A stronger yen slashes the value of offshare sales for the country’s many heavyweight exporters, with automakers notable underperformers on the day.
Toyota sank 1.8 percent, and Subaru lost 1.2 percent. Electronics giants Sony and Nintendo declined 1.9 percent and 0.8 percent, respectively.
Financial firms were also standout losers, as they gave back some of the big gains that followed the Bank of Japan’s decision to raise interest rates to a three-decade high on Friday. Higher interest rates boost earnings from lending and fixed income holdings.
Insurers lost 1.6 percent as a group, while banks dropped 1 percent.
The Nikkei fell despite a big boost from heavily weighted semiconductor equipment maker Advantest, which added 127 points to the index with a 2.5 percent jump.
Tokyo Electron rose 0.7 percent, while smaller rival Screen Holdings surged 10 percent to be the Nikkei’s biggest percentage gainer after Morgan Stanley MUFG Securities raised its price target on the stock.
Chip stocks were supported by gains for Wall Street peers overnight, with the Philadelphia SE semiconductor index climbing 0.5 percent to mark a fourth straight session of gains. The S&P 500 notched a record high.
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