On June 26, the Nikkei stock index in Japan concluded the day with a third consecutive decline as concerns over the global economy weighed on investor sentiment. The benchmark Nikkei Stock Average dropped by 0.25 percent or 82.73 points, closing at 32,698.81. Similarly, the broader Topix index decreased by 0.20 percent or 4.56 points, settling at 2,260.17.
The decline in Wall Street on Friday influenced investor sentiment in Japan, leading to a drop in technology shares, following the downward trend set by their U.S. counterparts, particularly the tech-heavy Nasdaq index. The market witnessed fluctuating trade throughout the day, initially boosted by a weak yen, which benefited exporters, and some investors buying on dips. However, concerns surrounding the global economic outlook eventually pushed the index into negative territory.
Analysts highlighted S&P Global’s latest Purchasing Managers’ Surveys, which indicated a slowdown in business activity in several major European economies, as a factor contributing to the market’s negative sentiment. Maki Sawada, a strategist at Nomura Securities Co., commented on the worsening global economic sentiment and its impact on the benchmark index.
Chip-related stocks also experienced losses, similar to their U.S. counterparts. Advantest, a chip-testing equipment manufacturer, saw a decline of 1.0 percent, while Tokyo Electron, a semiconductor equipment maker, fell by 0.8 percent. Fast Retailing, a major player in the retail sector and operator of the Uniqlo chain of clothing stores, weighed down the broader market with a 0.6 percent decrease.
Exporters in Japan benefited from the weakening yen against the U.S. dollar, spurred by statements from U.S. Federal Reserve officials hinting at potential aggressive interest rate hikes. This contrasted with the Bank of Japan’s ongoing ultra-loose monetary policy. Notable winners among exporters included Toyota Motor, which saw a 1.0 percent increase, and Nikon, which experienced a 3.6 percent jump. Game and console manufacturer Nintendo also registered a modest gain of 0.9 percent.
In terms of sectors, electric power and gas, wholesale trade, and bank issues recorded the most significant declines. The Prime Market turnover for the first trading day of the week amounted to 3,260.37 billion yen (22.77 billion U.S. dollars).
