Japan shares extend losses as rate uncertainty, geopolitical woes curb appetite
- The Nikkei 225 Index fell 0.9% to 69,366.14, while the broader Topix slid 1.54% to 4,090.19
TOKYO: Japanese shares fell roughly 1% on Thursday, down for a second consecutive session, as investors paused after recent rallies, wary of the US rate outlook and geopolitical tensions.
The Nikkei 225 Index fell 0.9% to 69,366.14, while the broader Topix slid 1.54% to 4,090.19.
“Japanese shares had risen at a rapid pace through yesterday, and profit-taking has since picked up.
That selling pressure appears to be continuing today,“ said Hiroki Takei, strategist, Resona Holdings.
Japanese AI-related shares were subdued even after Samsung Electronics, the world’s largest memory chipmaker, projected a nearly ninefold jump in third-quarter operating profit from a year earlier.
Shares of chipmaker Rohm lost 3.5%, while technology investor SoftBank Group shed nearly 3% and Yaskawa Electric fell 2.6%. Concerns over US monetary policy remained in focus after Federal Reserve minutes released on Wednesday showed divisions among policymakers over the rationale for the September rate hike, with most participants signalling another increase by year-end.
The 10-year Treasury yield hit a 24-year high overnight before paring gains.
Geopolitical tensions also dampened risk appetite, as increased attacks on shipping in the Gulf and the Strait of Hormuz fuelled concerns over Middle East oil supplies and pushed crude prices higher.
Breadth was negative, with 187 decliners in the Nikkei 225 against 38 advancers.
The largest percentage losers in the Nikkei were agricultural machinery and equipment maker Kubota Corporation, down 7.42%, followed by construction machinery maker Komatsu, which fell 7.2%, and machine tools maker Okuma, down 4.67%.
The largest percentage gainers were cybersecurity software company Trend Micro, up 5.79%, followed by chipmaker Kioxia, which rose 3.27%, and chip equipment maker Screen Holdings, up 2.58%.
Two major retailers Uniqlo operator Fast Retailing and convenience store chain Seven & i Holdings are due to report their earnings after the bell.
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