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Japan's Nikkei falls as tech shares track Wall Street losses
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Japan's Nikkei falls as tech shares track Wall Street losses
Nov 19, 2024 8:39 PM

TOKYO, Nov 18 (Reuters) - Japan's Nikkei share average

fell on Monday as technology shares tracked U.S peers' losses at

the end of last week, while drugmaker shares declined after a

noted vaccine sceptic was appointed to head the U.S. Department

of Health.

Automaker shares came under pressure from an overall

stronger yen, although the currency pulled back slightly from

early highs after Bank of Japan Governor Kazuo Ueda refrained

from giving strong hints about the timing of interest rate hikes

in a speech to business leaders. Ueda will also hold a news

conference at 0445 GMT.

The Nikkei entered the midday recess down 0.78% at

38,343.39.

It had earlier tumbled as much as 1.27%, but got some

respite after the yen dropped back to the weaker side of 155 per

dollar from as strong as 153.84 earlier in the

session. It was changing hands at 154.60 as of 0233 GMT.

A strong yen reduces the value of overseas revenue for

Japan's heavyweight exporters, and also makes Japanese stocks

more expensive for foreign investors.

The broader Topix lost 0.47%.

On Friday, all three of the main Wall Street indexes

declined, and the Philadelphia SE Semiconductor Index

slumped 3.4%.

The initial euphoria over a Donald Trump election win

ushering in easier regulation and bigger fiscal spending shifted

last week to worries over the potential for higher inflation

under his policies that could slow Federal Reserve rate cuts.

His cabinet picks have also caused some concerns, including

the appointment of Robert F Kennedy Jr, who has spread

misinformation on vaccines, to head the Department of Health and

Human Services.

Chugai Pharmaceutical ( CHGCF ) was the Nikkei's biggest

loser, sliding 8.56%. Drugmakers as a group led

decliners among the Tokyo Stock Exchange's 33 industry groups.

"Whether the Trump trade is over or just on pause is not

possible to discern at the moment," said Kazuo Kamitani, an

equities strategist at Nomura Securities.

"My personal feeling is that the market will be turbulent

all of this month."

Among tech names, Tokyo Electron ( TOELF ) dropped 2.26% and

startup investor SoftBank Group fell 2.31%.

Nvidia supplier Advantest ( ADTTF ) was volatile, dropping as

much as 3.58% before bouncing as much as 1.38% and then entering

the midday recess close to flat. Nvidia's earnings report on

Wednesday will be one of the most closely watched market events

of the week.

Toyota Motor ( TM ) and Nissan Motor ( NSANF ) each fell

about 1%.

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