financetom
Market
financetom
/
Market
/
Japan's Nikkei slides before BOJ decision as chip shares weigh
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Japan's Nikkei slides before BOJ decision as chip shares weigh
Mar 18, 2024 7:42 PM

TOKYO, March 19 (Reuters) - Japan's Nikkei share average

slid on Tuesday ahead of a pivotal Bank of Japan policy

decision, with investors braced for an end to eight years of

radical monetary stimulus.

Many semiconductor-related shares had outsized losses, after

Nvidia's ( NVDA ) annual developer conference failed to provide

fresh momentum for the global artificial intelligence-centred

chip stock rally.

Energy shares were the top performers, after a 2% jump in

crude oil prices overnight.

The Nikkei slipped 0.8% to 39,429,73, as of 0130

GMT, giving up some of Monday's 2.7% surge, when investors

cheered media reports offering further insight on what BOJ

policymakers would do on Tuesday.

The broader Topix eased 0.2%, with a sub-index of

growth shares down 0.5%, while value stocks

were flat.

"With every media outlet basically reporting an end to

negative rates, yield curve control and ETF buying - what you

could call the full set of three - the market has already

completely priced in this outcome," said Kazuo Kamitani, an

equities strategist at Nomura Securities.

He said the updated dot plot when the U.S. Federal Reserve's

own policy meeting ends on Wednesday would be a near-term "focal

point." Japanese markets are closed for a national holiday that

day.

There is no set time for the BOJ's policy announcement, but

it has recently come around the time stock markets reopen from

the midday recess at 0330 GMT.

Top BOJ officials, including Governor Kazuo Ueda, have

stressed that bond purchases would continue even if yield curve

control is ended, and that the central bank will not engage in

successive hikes after exiting negative rates.

Chip-testing equipment maker Advantest ( ADTTF ), which

counts Nvidia ( NVDA ) among its customers, was among the Nikkei's worst

performers on Tuesday, slumping 2.5%.

AI-focused startup investor SoftBank Group ( SFTBF ) dropped

0.7%.

The biggest drag on the Nikkei was Uniqlo store operator

Fast Retailing ( FRCOF ) due to its particularly heavy weighting

in the index. Shares of Fast Retailing ( FRCOF ) slid 1.8%.

Inpex ( IPXHF ) was the Nikkei's top performing energy stock,

gaining 2.3%. Among top sectors, miners - which

includes oil explorers - gained 2.2%, while oil and coal

producers rose 1.2%.

(Reporting by Kevin Buckland; Editing by Subhranshu Sahu)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Equity Markets Rebound; Yields Jump
Equity Markets Rebound; Yields Jump
Aug 6, 2024
04:39 PM EDT, 08/06/2024 (MT Newswires) -- US benchmark equity indexes closed higher Tuesday following steep losses in the previous two sessions, while Treasury yields posted sizable gains. The S&P 500 rose 1% to 5,240, and the Nasdaq Composite rose 1% to 16,366.9. The Dow Jones Industrial Average advanced 0.8% to 38,997.7. All sectors posted gains, led by real estate....
Bridgewater says sell-off in Japan's stocks is overdone
Bridgewater says sell-off in Japan's stocks is overdone
Aug 6, 2024
NEW YORK, Aug 6 (Reuters) - Bridgewater Associates said in a commentary sent to investors on Tuesday that it believes the sell-off in Japan's equities the previous day was exaggerated and that the stocks remain somewhat attractive, according to two sources familiar with the letter. According to the sources, the $112.5 billion global macro hedge fund wrote that, in their...
Sector Update: Tech
Sector Update: Tech
Aug 6, 2024
03:30 PM EDT, 08/06/2024 (MT Newswires) -- Tech stocks were higher late Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 2.5% and the SPDR S&P Semiconductor ETF (XSD) adding 1.5%. The Philadelphia Semiconductor index climbed 2.2%. In corporate news, Lumen Technologies ( LUMN ) shares soared 86% as Citigroup upgraded the company's rating to neutral from sell,...
US STOCKS-Indexes end with strong gains, rebounding from global market sell-off
US STOCKS-Indexes end with strong gains, rebounding from global market sell-off
Aug 6, 2024
* Uber ( UBER ) jumps after Q2 revenue beat * Caterpillar ( CAT ) rises after Q2 profit beat * Indexes: Dow up 0.8%, S&P 500 up 1%, Nasdaq up 1% (Updates to 4:30 p.m. ET) By Caroline Valetkevitch NEW YORK, Aug 6 (Reuters) - The S&P 500 and Nasdaq ended 1% higher on Tuesday as investors jumped back...
Copyright 2023-2026 - www.financetom.com All Rights Reserved