Japan's Nikkei posts one-month closing low on rate, FX uncertainty
Uncertainty over interest rates and currencies kept investors away from risk assets
Japan's Nikkei share average experienced its lowest closing level of the month on Thursday (Sep 3), as uncertainty surrounding interest rates and currencies deterred investors from risk assets. The Nikkei 225 Index declined by 0.17 percent to 64,214.48, while the broader Topix gained 0.5 percent to 4,102.04. Analyst Naoto Takahashi from Aizawa Securities noted that market focus had shifted to interest rates and foreign exchange, prompting selling in risk assets due to the prevailing uncertainty.
Chip- and AI-related companies exhibited mixed performance, with Advantest dropping 0.8 percent and Fujikura falling 2.73 percent, whereas Kioxia increased by 1.31 percent and Tokyo Electron rose 0.36 percent. US Treasury yields softened from multi-year peaks, and 30-year Japanese government bond yields declined by up to 10 basis points.
The energy exploration sector in Japan underperformed, slipping 3.26 percent, marking the worst among the 33 sector sub-indexes on the Tokyo bourse. The Japanese yen gained strength as investors reassessed domestic rate expectations in a more hawkish light, appreciating 1.24 percent against the dollar to 156.71. Market breadth was positive, with 141 Nikkei constituents surging and 82 declining, although a handful of heavily weighted stocks contributed to the benchmark's decline.
Notable percentage losers included Inpex, down 4 percent, and Yokogawa Electric, down 3.75 percent. Conversely, Nitori Holdings surged 8.41 percent, and Sumitomo Heavy Industries climbed 5.09 percent, becoming the Nikkei's top percentage gainers.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
