(MENAFN) On Thursday, Japan's Nikkei index experienced a notable 2 percent decline, driven primarily by pressure from technology stocks. This decrease comes after three consecutive sessions of gains and ahead of the awaited decision on monetary policy by the Bank of Japan, scheduled for Friday.
The Nikkei concluded the trading day down by 2.16 percent, settling at 37,628.48 points. This decline follows a substantial 2.4 percent increase recorded on Wednesday, marking the largest jump in over a month and allowing the index to surpass the 38,000-point threshold. Similarly, the broader Topix index also experienced a downturn, falling by 1.74 percent to 2,663.53 points.
According to Kentaro Hayashi, chief strategist at Daiwa Securities, the recent volatility in the market can be attributed to various factors contributing to uncertainty among investors. Hayashi highlighted stable inflation rates in the United States, which have led to increased American revenues, as well as escalating tensions in the Middle East, resulting in a rise in oil prices.
The decline in the Nikkei index was particularly driven by losses in chip-related stocks, with Tokyo Electron and Advantest shares dropping by 3.48 percent and 1.71 percent, respectively. Additionally, shares of Shin-Etsu Chemical fell by 2.68 percent.
As investors await the Bank of Japan's decision on monetary policy, market sentiment remains cautious, with investors closely monitoring developments both domestically and globally. The outcome of the central bank's decision is anticipated to have a significant impact on market dynamics and investor sentiment in the near term.
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