Nikkei falls for second day in row amid expected NVIDIA earnings report
Date
2/21/2024 4:54:06 AM
(MENAFN) For the second consecutive day, Japan's NIKKEI index experienced a downturn on Wednesday, remaining below its all-time high as investors eagerly awaited the financial results of American chip maker NVIDIA. The outcome of NVIDIA's earnings report is anticipated to provide insights into the current enthusiasm surrounding artificial intelligence, which has been a driving force behind recent bullish sentiments in global stock markets.
Despite a partial recovery in early trading, the Nikkei ultimately closed down by 0.26 percent at 38,262.16 points, with 124 out of 225 Stocks witnessing declines. Over the past week, the index has approached its historical peak of 38,957.44 points, achieved on the final trading day of 1989 during Japan's bubble economy era. However, it still remains approximately 700 points shy of reaching this record level.
The broader Topix index also experienced a decline, falling by 0.19 percent to 2,627.3 points. Notably, technology-related stocks were among the casualties on the Nikkei index, with chip maker Advantest, a key client of NVIDIA, seeing a drop of around 2 percent. Similarly, shares of Tokyo Electron, a major semiconductor equipment manufacturer, declined by 0.38 percent, while Lasertec Chip Company witnessed a decrease of 1.89 percent.
The downturn in SoftBank shares, which have a focus on investments in artificial intelligence, further contributed to the negative sentiment. Masahiro Ichikawa, a strategist at Sumitomo Mitsui DS Asset Management, highlighted the significant impact of Japanese chip giants, particularly those with ties to high-tech firms in the United States, on the Nikkei index. He emphasized the crucial importance of NVIDIA's earnings report in shaping market dynamics and investor sentiment, underscoring the heightened attention surrounding developments in the semiconductor industry.
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