(MENAFN) The Nikkei index, Japan's benchmark index of leading stocks, concluded Monday's trading session on a downward trajectory as investors hurried to offload stocks amidst heightened violence in the Middle East and selling activities on Wall Street towards the end of the previous week. The escalating tensions in the Middle East, compounded by selling pressure on Wall Street, prompted a wave of selling in Japanese equities, leading to a decline in market sentiment.
Shares within the Japanese semiconductor sector mirrored the downturn experienced by their American counterparts following reports that China had instructed its largest telecommunications companies to phase out the use of foreign chips. This development further exacerbated the downward pressure on the Nikkei index.
The Nikkei index recorded a decline of 0.74 percent, closing at 39,232.80 points, although it managed to recover some of its early losses, which had initially pushed the index down by 1.78 percent. Similarly, the broader Topix index also experienced a decline of 0.23 percent.
Market sentiment was notably affected by the significant sell-off observed in major Wall Street indexes on Friday, with several indexes shedding over 1 percent. The situation worsened following Iran's unprecedented attack on Israel over the weekend, intensifying risk aversion among investors and further dampening morale.
Kazuo Kamitani, equity strategist at Nomura Securities, remarked that the prevailing risk aversion was exerting pressure on Japanese stocks. Among the stocks weighing heavily on the Nikkei index was Astellas Pharmaceuticals, which experienced a notable eight percent decline, consequently dragging down the pharmaceutical sector index by 1.86 percent, placing it at the bottom of the 33 sub-indices on the Tokyo Stock Exchange.
The decline in the Nikkei index underscores the cautious stance adopted by investors amidst geopolitical uncertainties and the lingering impact of market volatility. As investors continue to monitor developments both domestically and globally, market dynamics remain fluid, with fluctuations likely to persist in the near term.
MENAFN15042024000045015682ID1108095220
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.