Japan shares extend losses as rate uncertainty, geopolitical woes curb appetite
TOKYO: Japanese shares fell roughly 1% on Thursday , down for a second consecutive session, as investors paused after recent rallies, wary of the US rate outlook and geopolitical tensions. The Nikkei 225 Index fell 0.9% to 69,366.14, while the broader Topix slid 1.54% to 4,090.19. “Japanese shares had risen at a rapid pace through yesterday, and profit-taking has since picked up. That selling…
Japanese equities declined by nearly 1% on Thursday, marking a second straight day of losses, as market participants paused following recent rallies and braced for potential challenges in the US interest rate outlook and escalating geopolitical tensions. The Nikkei 225 Index slipped 0.9% to 69,366.14, while the broader Topix Index declined 1.54% to 4,090.19.
Strategist Hiroki Takei of Resona Holdings noted that Japanese shares had surged sharply the previous day, prompting a wave of profit-taking that has persisted into the current session.
Despite strong performance from Samsung Electronics, the world's largest memory chipmaker, which revised upward its third-quarter operating profit forecast by nearly ninefold, Japanese AI-related equities experienced a muted response. Shares of chip manufacturer Rohm plummeted 3.5%, while SoftBank Group suffered a near 3% decline, and Yaskawa Electric experienced a 2.6% drop.
US monetary policy concerns continued to dominate market sentiment, following the Federal Reserve's minutes released on Wednesday that revealed internal divisions among policymakers regarding the rationale behind the September rate hike. Most participants indicated the likelihood of further rate hikes before the year's end. The 10-year Treasury yield surged to a 24-year high the previous night before retracting some gains.
Geopolitical uncertainties also weighed on risk appetite, as heightened attacks on shipping vessels in the Gulf and the Strait of Hormuz heightened worries about Middle East oil supplies and led to a rise in crude prices. The breadth of the Nikkei 225 Index was decidedly negative, with 187 stocks falling against 38 that gained. Notable decliners included agricultural machinery and equipment producer Kubota Corporation, down 7.42%, construction machinery maker Komatsu, down 7.2%, and machine tools manufacturer Okuma, down 4.67%.
Conversely, cybersecurity software firm Trend Micro surged 5.79%, chipmaker Kioxia increased 3.27%, and chip equipment maker Screen Holdings rose 2.58%.
Two prominent retailers, Fast Retailing, operator of Uniqlo, and convenience store chain Seven & i Holdings, are scheduled to release their earnings reports after the market close.
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