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Japan's Nikkei slides as strong yen and Wall Street losses hit sentiment
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Japan's Nikkei slides as strong yen and Wall Street losses hit sentiment
Feb 24, 2025 7:17 PM

(Updates for midday break)

By Brigid Riley

TOKYO, Feb 25 (Reuters) - Japan's Nikkei share average

fell to its lowest in just over a month on Tuesday, as a

stronger yen and Wall Street losses overnight weighed on

sentiment.

The Nikkei shed 1.1% to 38,345.99 by the midday

break, after sliding to its lowest level since January 17 in

early trade. The broader Topix was down 0.3% at

2,727.59.

Technology stocks were the heaviest weight on the Nikkei as

the market opened after a holiday on Monday, tracking weakness

in their U.S. peers. Chip-related shares Advantest ( ADTTF ) fell

4.9% and Tokyo Electron ( TOELF ) declined 3.8%.

The Nasdaq closed down more than 1% on Monday, with big

technology stocks creating the biggest drag as investors worried

about demand for technology supporting artificial intelligence

while they waited for results from market heavyweight Nvidia ( NVDA )

.

Meanwhile, Japanese exporters came under pressure after the

yen touched its strongest level against the dollar since early

December the previous day, although the currency softened on

Tuesday. The dollar last fetched 149.95 yen.

Investors were also sizing up a litany of tariff threats

against trading partners from U.S. President Donald Trump,

including on automobiles, steel and aluminium.

Elsewhere, Itochu ( ITOCF ), Marubeni ( MARUF ), Mitsubishi

Corp ( MSBHF ), Mitsui ( MITSF ) and Sumitomo Corp ( SSUMF ) surged

after Warren Buffett said on Saturday that his conglomerate

Berkshire Hathaway ( BRK/A ) will likely increase its ownership

in the five Japanese trading houses.

While Buffett's remarks appear to have bolstered the trading

firms, a "modest increase" in Berkshire Hathaway's ( BRK/A ) holdings is

unlikely to alter overall sentiment on Japanese markets, said

James Halse, managing director of Sydney-based Senjin Capital.

"The trading companies are more of a play on resource prices

(and) global growth rather than a specific Japan exposure," he

said.

Among other major shares, Uniqlo parent firm Fast Retailing ( FRCOF )

gave up 2.9%, AI-focused startup investor SoftBank

Group fell 3.2%, and automaker Toyota Motor ( TM )

shed 0.7%.

(Reporting by Brigid Riley; Editing by Varun H K)

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