Tech Leads Japan’s Nikkei Stock Average Lower; Yen Retreat Caps Losses (Update 1)

Reuters

12:18 JST, September 9, 2024 (updated at 15:35 JST)

TOKYO (Reuters) – Japan’s Nikkei share average fell on Monday, with technology stocks among the biggest decliners, although the benchmark index escaped steeper losses as the yen retreated from a one-month high.

The Nikkei ended the day down 0.48% at 36,215.75, recovering the psychologically key 36,000 mark after dropping below it for the first time since Aug. 13 earlier. At its lowest point in the session, the Nikkei plunged 3.14%.

Semiconductor-sector stocks led decliners on the benchmark throughout the day, following a sharp slide among Wall Street peers on Friday. Chip-making equipment giant Tokyo Electron sank 2.27% to be the biggest loser in index point terms. Chip-testing machinery maker Lasertec was the biggest percentage decliner, dropping 4.8%.

The Topix index ended the day down 0.68%.

Japanese stocks started on the back foot following a sell-off in U.S. equities on Friday, after monthly U.S. payrolls figures confirmed the jobs market was losing momentum.

“The results of the employment report, despite not revealing a sudden worsening of the U.S. economy, left traders feeling deeply uncertain about the outlook,” said Maki Sawada, an equities strategist at Nomura Securities.

However, Sawada said Nikkei selling may have run its course, considering the healthy earnings outlook and a 5.8% tumble for the index last week. The yen exchange rate will continue to be a focus for the market, she added.

The yen last traded at 142.855 per dollar JPY=EBS, but had rallied as much as 141.75 on Friday for the first time since Aug. 5.

Despite the yen’s retreat over the course of the session, Friday’s sharp appreciation weighed on shares of exporters, particularly automakers.

Transport equipment dropped 2.41% to be the worst performer among the Tokyo Stock Exchange’s 33 industry groupings. Toyota Motor slumped 3.19% while Nissan sagged 1.66%.

One bright spot was takeover-target Seven & i Holdings, whose 2.41% rally put it among the Nikkei’s best performers. Canadian rival Alimentation Couche-Tard said on Sunday it was willing to engage in confidential discussions with the company, after its initial $38.5 billion buyout offer was rejected.