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Nikkei logs sharpest fall in over 2 months on tech plunge, Asia falls
The 225-issue Nikkei Stock Average ended down 909.75 points, or 3.08 percent, from Monday at 28,608.59. The index closed at the lowest since April 21 with the largest point drop since Feb. 26. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 46.35 points, or 2.37 percent, lower at 1,905.92.
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Passersby wearing protective face masks, following an outbreak of the coronavirus, walk past in front of an electric screen displaying Nikkei share average outside a brokerage in Tokyo, Japan March 2, 2020. REUTERS/Issei Kato (REUTERS/Issei Kato)
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okyo stock tumbled Tuesday, with the Nikkei index posting the sharpest drop in more than two months, as major technology issues slipped following a plunge in their US peers overnight and falls in other Asian markets.
The 225-issue Nikkei Stock Average ended down 909.75 points, or 3.08 percent, from Monday at 28,608.59. The index closed at the lowest since April 21 with the largest point drop since Feb. 26. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 46.35 points, or 2.37 percent, lower at 1,905.92.
Decliners were led by machinery, precision instrument and information and communication issues.
In the currency market, the US dollar hovered in the upper 108 yen range amid a wait-and-see mood ahead of the release of the US consumer price index for April on Wednesday, dealers said.
At 5 p.m., the dollar fetched 108.94-95 yen compared with 108.78-88 yen in New York and 108.91-93 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.2141-2142 and 132.27-31 yen against $1.2123-2133 and 131.99-132.09 yen in New York and $1.2147-2149 and 132.30-34 yen in Tokyo late Monday afternoon.
The yield on the benchmark 10-year Japanese government bond decreased 0.010 percentage point from Monday's close to 0.070 percent as investors bought the safe-haven debt amid risk aversion triggered by sharp falls in Tokyo shares. Bond yields move inversely to prices.
The Tokyo market shot lower from the outset, with the Nikkei extending losses toward the close to snap a three-day winning streak.
Chip makers and other technology firms took a hard hit after the US tech-heavy Nasdaq composite index sank more than 2 percent on rises in US long-term interest rates overnight, brokers said.
The market slide was boosted as "investor sentiment was (also) worsened by declines in other markets such as Taiwan and South Korea where semiconductor and electronics issues have a big impact," said Maki Sawada, a strategist at Nomura Securities's Investment Content Department.
Selling was also focused on some companies sensitive to domestic demand, taking profits from their recent substantial gains, Sawada said.
But that is not expected to drag on, as recent earnings reports suggest an improvement in performance, with some companies having posted profits for the last fiscal year reversing earlier losses, she said.
On the First Section, declining issues outnumbered advancers 1,989 to 169, while 33 ended unchanged.
Among electronics and component makers, Sony Group sagged 380 yen, or 3.5 percent, to 10,400 yen, electronic parts maker Murata Manufacturing dropped 318 yen, or 3.7 percent, to 8,381 yen and ceramic electronic components maker Taiyo Yuden sank 250 yen, or 5.0 percent, to 4,750 yen.
Panasonic skidded 75.00 yen, or 5.8 percent, to 1,215.50 yen a day after it reported its sales in fiscal 2020 fell below the 7 trillion yen mark for the first time in 25 years.
Bucking the downward trend, seasonings maker Ajinomoto advanced 87.50 yen, or 3.8 percent, to 2,410.00 yen after reporting Monday a bigger-than-expected net profit for fiscal 2020 as more people cooked at home amid the coronavirus pandemic.
Trading volume on the main section rose to 1,289.14 million shares from Monday's 1,126.70 million shares.
