Japan's Nikkei index faces daily downturn in six weeks


(MENAFN) On Tuesday, Japan's Nikkei index faced its most significant daily downturn in approximately six weeks, driven by a sell-off triggered by the surge in US Treasury yields. The Nikkei recorded a notable decline of 1.37 percent, concluding at 32,775.82 points, marking the most substantial single-day drop since October 26. Throughout the trading session, the index touched a three-week low at 32,726.68 points, indicating the severity of the market reaction.

Chip-related companies bore the brunt of the downturn, emerging as the primary casualties among the major losers on the Nikkei index. Advantest witnessed a substantial six percent decline, Tokyo Electron experienced a 3.8 percent dip, Screen Holdings shares dropped by five percent, and Renesas Electronics shares saw a five percent reduction.

The broader Topix index mirrored the trend, registering a decline of 0.82 percent to settle at 2,343.16 points. Meanwhile, amidst the downturn, some stocks managed to buck the trend. Sakura Internet, a provider of cloud computing services, emerged as a notable gainer with a significant 13 percent jump. Additionally, ACSL, a robotics manufacturer, experienced a six percent increase in its stock value.

This market downturn is attributed to the notable rise in US Treasury bond yields, exerting a negative impact on shares of companies heavily reliant on semiconductor chips. The heightened concerns among investors regarding the repercussions of elevated yields contributed to the widespread sell-off, emphasizing the vulnerability of markets to fluctuations in global economic conditions. As markets grapple with these challenges, the trajectory of US Treasury yields continues to play a pivotal role in shaping investor sentiment and influencing market dynamics.

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