Japan's Nikkei 225 Index Extended Losses to Third Consecutive Day Amid Weak Tech Stocks

Akira Ito
29 Aug, 2024
Tokyo

Benchmark indexes in Tokyo struggled to advance for the third day in a row, and losses in technology stocks outweighed gains in other sectors. 

Semiconductor-related stocks were under pressure in Tokyo after Nvidia's current quarter sales outlook fell short of some analysts high expectations. 

Nvidia, the leading artificial intelligence technology player, and dramatic transformation of the company have attracted worldwide attention, catapulting the company's valuation above one trillion only a few months ago. 

The company's results are now viewed as a proxy for artificial intelligence spending by tech companies and provide critical support for the tech stock rally in 2024. 

Nvidia said revenue in the fiscal second quarter ending in July soared 122% to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago. 

The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors lofty expectations. 

Closer to home, the yen weakened 0.13 to 144.53 yen against the U.S. dollar after comments from Deputy Governor Ryozo Himino soothed market anxieties about future rate paths. 

 

Japan Stock Movers 

The Nikkei 225 stock average decreased 0.1% to 38,352.12, and the broader Topix index declined 0.1% to 2,692.15. 

Semiconductor stocks plunged, tracking losses in Nvidia's stock in after-hours trading in New York. 

Tokyo Electron, Advantest, Screen Holding, Disco Corp., and Lasertec fell between 0.5% and 4%. 

Nidec declined 3.3% to ¥5,887.0, ZOZO dropped 3% to ¥4,615.0, Shiseido fell 2.2% to ¥3,271.0, and Rakuten Group eased 4.3% to ¥1,002.0. 

However, Sompo Holding increased 2.6% to ¥3,421.0, and Taiyo Yuden advanced 2.2% to ¥3,506.0. 

Sumitomo Mitsui Financial declined 0.4% to ¥9,597.0, Mitsubishi UFJ Financial increased 0.4% to ¥1,516.0, and Mizuho Financial Group fell 0.4% to ¥3,003.0. 

Toyota Motor decreased 0.7% to ¥2,726.0, Honda Motor increased 0.7% to ¥1,583.0, and Nissan Motor plunged 1.8% to ¥420.20.