Decline of Japanese Market Significant
Japanese Market Drops Amidst Weak Domestic Economic Data
The Japanese market experienced a significant drop on Thursday, with the Nikkei 225 Index trading lower and falling below the 42,900 level. This downturn was primarily driven by weak domestic economic data, specifically a contraction in Japan’s factory activity for the second straight month in August.
Despite some support from U.S. markets, the sustained contraction in factory activity dampened confidence in Japan’s exporters and manufacturing-heavy tech stocks. Other factors contributing to the selloff included market reaction to inflation and monetary policy signals, with Japan’s core inflation slowing and expectations building that the Bank of Japan may maintain or even tighten policy soon.
Profit-taking and cautious investor sentiment following recent record highs and strong prior gains in tech stocks and exporters also played a role in the selling pressure.
Some of the notable declines included SoftBank Group, which gained more than 3 percent, while Aeon, Hitachi, Kajima, and Taisei slid almost 3 percent each. Canon, Furukawa Electric, Recruit Holdings, Advantest, and Tokyo Electron all declined almost 2 to 4 percent. Shimizu, Ryohin Keikaku, Sony, Mitsubishi Electric, and Panasonic all lost more than 1 to 3 percent each.
However, the decline in the Nikkei 225 Index was partially offset by gains in financial stocks, with Sumitomo Mitsui Financial, Mizuho Financial, and Mitsubishi UFJ Financial edging up 0.4 to 0.5 percent each. Nitori Holdings added almost 3 percent, while Screen Holdings was down almost 1 percent.
Meanwhile, on Wall Street, stocks pulled back but closed mostly higher after initially extending the rally seen during Tuesday’s session. The Dow posted a more significant gain, jumping 463.66 points or 1.0 percent to 44,922.27. The Nasdaq inched up 31.24 points or 0.1 percent to 21,713.14, reaching a new record closing high despite pulling back. Toyota and Honda edged down 1.5 and 0.2 percent, respectively, while Kawasaki Heavy Industries slipped more than 4 percent.
In Europe, the German DAX Index and the French CAC 40 Index both advanced by 0.7 percent, and the U.K.’s FTSE 100 Index edged up by 0.2 percent.
Crude oil prices fell on Wednesday due to the International Energy Agency projecting oversupply in the market this year, with West Texas Intermediate crude for September delivery down $0.55 or 0.87 percent at $62.62 per barrel.
[1] Based on information from Reuters and Bloomberg. [2] Data as of 11:30 a.m. Tokyo time (04:30 GMT). [3] Data as of 4:00 p.m. Tokyo time (09:00 GMT). [4] Data as of 8:00 a.m. New York time (13:00 GMT). [5] Based on information from Nikkei Asia and Bloomberg.
Read also:
- Ford Discontinues Popular Top-Seller in Staggering Shift, Labeled as a "Model T Event"
- Dubai-bound: Omega Seiki Mobility, an electric vehicle company from India, prepares for assembly establishment
- Best Strategies for Software Updates in SCCM and WSUS
- UNEX EV, U Power's collaborator, inks LOI with Didi Mobility for the implementation of UOTTA battery-swapping vehicles in Mexico.
