Japan’s Nikkei ends flat as tech stocks rebound
Companies like Tokyo Electron and Advantest, which supply equipment and materials to the semiconductor sector, were among those that felt the impact of the initial sell-off.
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Companies like Tokyo Electron and Advantest, which supply equipment and materials to the semiconductor sector, were among those that felt the impact of the initial sell-off.
The dramatic rally in Japan’s stock market came as semiconductor stocks, a key sector in the global tech landscape, experienced significant buying interest. This surge was catalyzed by strong performance in U.S. chip stocks, which had risen the previous day while the Tokyo market was closed for a national holiday.
The dramatic downturn followed the release of disappointing U.S. jobs data for July, which revealed nonfarm payrolls significantly below market expectations and an increase in the unemployment rate. The weak data triggered concerns about a potential hard landing for the U.S. economy, spurring a global sell-off in equities. On Friday, the Dow Jones Industrial Average had already experienced its largest decline of the year, closing down 610 points.
The Nikkei's rally was prompted by Wall Street's positive turnaround on Friday, which saw major indices climb as investors returned to technology giants that had previously experienced significant sell-offs. Additionally, favorable U.S. inflation data has heightened hopes that the Federal Reserve may soon start reducing interest rates, further boosting investor confidence.
The Nikkei index in Japan fell to a one-month low, impacted by mixed U.S. tech earnings and a surge in the yen.
The Nikkei edged down 0.01% to finish at 39,594.39, falling short of breaching the psychological barrier of 40,000 despite a brief uptick of 0.8% earlier in the day.