Japan’s Nikkei share average recently saw a downturn, dropping 2.16% to close at 37,628.48, following a three-day upward streak. This slide was led primarily by losses in the technology sector, while the market braces for the Bank of Japan’s upcoming policy announcement.
SEE: Nikkei 225 plummets as seen on VT Markets trading app.
On Thursday, the broader Topix index also dipped by 1.74% to 2,663.53, reflecting a general cautious mood across the market. Specifically, tech companies like Tokyo Electron and Advantest saw declines of 3.48% and 1.71%, respectively, pulling down the tech-heavy index.
Other major companies like Shin-Etsu Chemical and SoftBank Group also saw their shares drop, and even Toyota Motor fell 3.34% despite the yen reaching a 34-year low.
As noted by VT Markets, the USD/JPY pair rose above 155 yen per dollar, a weakened level not seen since June 1990. This dip in the yen’s value has stirred talk of possible government intervention in the currency market, reminiscent of past instances where significant currency shifts led to official action.
The focus is now turning to the Bank of Japan and what Governor Kazuo Ueda might say about interest rate changes. The Nikkei Volatility Index’s recent peak suggests that investors are feeling quite uncertain, which is not surprising given the current global economic cues.
In the tech sector, firms like Canon dropped 8.42% after reporting a profit forecast that didn’t meet market expectations. However, it’s not all gloomy news in the market. Daiichi Sankyo rose after announcing a plan to buy back up to 200 billion yen worth of its shares.
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