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Japan's Nikkei tracks Wall Street declines, BOJ comments drag
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Japan's Nikkei tracks Wall Street declines, BOJ comments drag
Aug 7, 2024 8:00 PM

TOKYO, Aug 8 (Reuters) - Japanese shares were under

fresh pressure on Thursday as domestic chip stocks followed a

slide on Wall Street overnight and as more details from the Bank

of Japan (BOJ) pointed to hawkishness and further monetary

tightening.

The Nikkei index was only marginally weaker

following its plunge on Monday and subsequent recovery. It

looked fragile, however, with expectations of a revival in yen

carry trades being unwound after the central bank's release of

minutes of its July meeting.

Some BOJ board members called for the need to keep raising

interest rates, with one saying they should eventually be

increased to at least around 1%, a summary of opinions voiced at

the July 30-31 meeting showed on Thursday.

At the July meeting, the BOJ raised its short-term policy

target to 0.25% from a range of 0% to 0.1%.

Markets had rallied and the yen had slipped on

Wednesday when the BOJ's influential Deputy Governor Shinichi

Uchida said the bank will not hike rates when markets are

unstable.

At 0200 GMT, the Nikkei index was down 1% at 34,725.30. The

broader Topix fell 0.77% to 2,469.98.

All three U.S. main indexes went red on Wednesday, with the

Nasdaq falling 1% as technology shares declined and weak demand

in a 10-year Treasury auction stoked investor jitters in choppy

trade.

"The domestic market will continue to go up and down for a

while as investors continue to look for an appropriate level of

the Nikkei for a while," said Shuutarou Yasuda, a market analyst

at Tokai Tokyo Intelligence Laboratory.

"Today the declines were limited as stocks with robust

earnings outcome rose," Yasuda said.

Chip-testing equipment maker Advantest ( ADTTF ) fell 5.69%,

making it the biggest drag on the Nikkei. Chip-making equipment

maker Tokyo Electron ( TOELF ) fell 1%.

Lasertec ( LSRCF ) surged 22% to provide the biggest support

after the microchip equipment maker said its annual net profit

will likely rise 25%.

Nitori Holdings ( NCLTF ) rose 8% after the home interior

goods retailer said its quarterly recurring profit rose 7.5%.

Fuji Soft was untraded amid glut of buy orders

after local media reported U.S. investment fund KKR & Co ( KKR )

plans to help the software developer go private under a

management buyout worth about 600 billion yen ($4.09 billion).

($1 = 146.6100 yen)

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