Tokyo Stock Exchange falls for third day in a row as high-tech stocks decline

On February 21st, the Nikkei Stock Average on the Tokyo Stock Exchange fell 101.45 yen from the previous business day to 38,262.16 yen, falling for the third consecutive day. The photo was taken in Tokyo on the 16th (2024 Reuters/Issei Kato)

TOKYO (Reuters) – On the Tokyo stock market, the Nikkei Stock Average fell 101.45 yen from the previous trading day to 38,262.16 yen, declining for the third day in a row. Following the decline in high-tech stocks in the US market the previous day, there was profit-taking in semiconductor-related stocks. There was also the view that investors had become a little more wary ahead of the announcement of US Nvidia’s financial results.

The Nikkei Stock Average started 171 yen lower than the previous business day, and the decline widened thereafter, but during the downturn, there was some buying on the dip, and the level did not continue to fall. The stock fell by 268 yen to a low of 38,095 yen.15 at the end of the market, and remained slightly lower until the market close. Profit-taking selling in semiconductor-related stocks, which have a large contribution to the index, put pressure on the market.

Regarding Nvidia’s financial results, which are of interest to market participants, he said, “The fact that the financial results are strong has been factored in to some extent in the stock price rise to date, and if it is as strong as market expectations, there is a possibility that there will be an adjustment once materials are exhausted. (Domestic Securities/Strategist)

According to Tomoichiro Kubota, senior market analyst at Matsui Securities, “In the past, Japanese semiconductor stocks made adjustments after Nvidia announced their financial results, so there was a sense of caution (about financial results).” However, even if high-tech stocks enter a correction, Kubota believes that Japanese stocks will remain resilient, saying, “We are seeing cyclical movements, and there is a possibility that other sectors will provide support.”

TOPIX closed 0.19% lower at 2,627.30 points. The trading value on the TSE prime market was 4,286,129 million yen. Among the 33 industries on the TSE, prices rose in 14 industries, including other products, rubber products, and pulp and paper. Prices fell in 19 industries, including mining, insurance, and oil and coal products.

Individually, Tokyo Electron (8035.T) and opens new tab were down slightly, while Advantest (6857.T) and opens new tab were down by 1.9%. SoftBank Group (9984.T), opens new tab was down 1.9%. On the other hand, Fast Retailing (9983.T), opens new tab is slightly higher. Aozora Bank (8304.T), opens new tab, rebounded from a sharp decline and performed well, rising over 8%.

In the prime market, 598 stocks (36%) rose in price, 991 stocks (59%) fell, and 68 stocks (4%) remained unchanged.

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2024-02-21 11:00:00
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