Japan\u2019s Nikkei share average closed marginally lower on Tuesday, extending its decline for the fifth consecutive session, as concerns over a strengthening yen overshadowed gains in the chip sector.<\/p>\n
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.<\/p>\n
A robust yen threatened to impact profitability for Japan\u2019s export-oriented companies, coinciding with the onset of earnings season this week. The yen traded at 156.20 per dollar on Tuesday, moderating slightly from its previous close of 157.50 last week.<\/p>\n
Market analyst Masayuki Kichikawa, chief Japan macro strategist at Mitsui Sumitomo DS Asset Management, acknowledged, \u201cThe market was somewhat overextended, prompting a necessary adjustment phase.\u201d<\/p>\n
Sector-wise, there has been notable rotation since mid-last week, with tech shares undergoing a correction while other sectors gain momentum, Kichikawa observed. Despite these shifts, he emphasized continuity in the upward trend.<\/p>\n
The broader Topix index saw a modest increase of 0.21%, with value stocks outperforming growth stocks. Among the top performers, chip sector stocks led gains, following a positive trend from U.S. markets overnight.<\/p>\n
Advantest, a prominent chip-testing equipment maker and Nvidia supplier, saw a 2.87% rise, while Tokyo Electron, a major chip-making machinery firm, gained 1.32%.<\/p>\n
In sectoral performance on the Tokyo Stock Exchange, shipping led with a significant 6.62% surge, surpassing banking which recorded a 1.59% increase among the exchange\u2019s 33 industry groups.<\/p>\n
Nippon Yusen stood out as Nikkei\u2019s top gainer, soaring 8.16% after revising its profit forecast. Similarly, Kawasaki Kisen Kaisha and Mitsui O.S.K. Lines saw robust gains of 6.44% and 5.27%, respectively.<\/p>\n
The Nikkei, which reached a record high of 42,426.77 on July 11, retreated to a three-week low of 39,519.39 on Monday, underscoring ongoing market adjustments amidst fluctuating economic indicators and global currency dynamics.<\/p>\n
Looking ahead, analysts anticipate continued sectoral adjustments while maintaining cautious optimism for the Nikkei, supported by underlying market fundamentals and corporate earnings expectations.<\/p>\n","protected":false},"excerpt":{"rendered":"
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