Japan’s Nikkei Stock Average Slides for Third Straight Day as Tech Losses Weigh (Update 1)

Reuters

13:04 JST, November 14, 2024 (updated at 16:30 JST)

TOKYO, Nov 14 (Reuters) – Japan’s Nikkei share average closed lower for a third-straight day on Thursday despite the yen falling to fresh lows, as major technology stocks tracked their U.S. peers lower.

The benchmark index started the day on the rebound, briefly crossing above 39,000 points during morning trade, but finished down 0.5% at 38,535.70 – its lowest closing level in just over a week as tech losses extended.

The broader Topix fell 0.3% to 2,701.22.

Chip-related shares Tokyo Electron and Advantest slid 3.5% and 2.8%, respectively, to weigh the heaviest on the Nikkei.

AI-focused startup investor SoftBank Group was down 3.2%, while Lasertec shed 5%.

Heavyweight Fast Retailing, meanwhile, helped limit losses as the Uniqlo parent firm rose 1.4%.

The banking sector added 0.9% as investors eyed a slew of earnings releases from large domestic banks on Thursday.

The yen’s slide below 156 per U.S. dollar lent some support to export shares including automakers, but gains narrowed during afternoon trade.

Toyota Motor ended just 0.2% higher.

“My impression is that the upside (for gains on the Nikkei) faces resistance for now,” said Hiroshi Namioka, chief strategist at T&D Asset Management.

The so-called “Trump trades” have boosted U.S. shares to record highs, in turn lifting Japanese equities last week.

The Nikkei has since faltered as investors booked profit and weighed how the incoming Trump administration’s stance on trade and tariffs could impact Japan.

At the same time, “there haven’t been any particularly noticeable policies coming out (from the incoming administration)…that determine the direction of Japanese equities,” said Namioka.

Amid the uncertainty, the Nikkei is likely to hold in the 38,000 to 40,000-point range in the medium term, he added.

The largest percentage loss in the index was Kansai Electric Power, down 18.5%, after the Japanese utility firm announced on Wednesday plans to raise 504.9 billion yen ($3.3 billion).