Nikkei reaches 3-week low as chip stocks tumble after Wall Street tumble
Date
7/22/2024 8:40:22 AM
(MENAFN) Japan's NIKKEI share average closed at a three-week low on Monday, marking its fourth consecutive session of declines as chip-related Stocks followed their Wall Street counterparts in a steep downturn. The Nikkei dropped by 1.16 percent to 39,599 points, its lowest closing level since June 28, extending its longest losing streak since October of the previous year. Similarly, the broader Topix index fell by 1.16 percent, settling at 2,827.53 points.
Takehiko Masuzawa, head of trading at Philip Securities Japan, attributed the Japanese market's performance to negative signals from overseas markets over the weekend. Shares of Tokyo Electron, a leading chip equipment manufacturer, plunged by 2.57 percent, contributing significantly to the Nikkei's losses. Additionally, Advantest, a company specializing in chip testing equipment, saw its shares fall by 3.53 percent.
This downward trend in Japan followed continued declines in U.S. stocks on Friday, exacerbated by a global software glitch that added to market volatility. Nvidia shares led a widespread sell-off in chip-related stocks, causing the Philadelphia Semiconductor Index to drop sharply and dragging the broader market down by 3 percent.
On the Tokyo Stock Exchange, 29 of the 33 sub-indexes experienced losses. Notably, railway companies and the airline sector were among the few exceptions, with gains of 1.22 percent and 0.41 percent, respectively. Out of the 225 stocks listed on the Nikkei, 170 declined, 52 advanced, and three remained unchanged, reflecting the overall bearish sentiment in the market.
MENAFN22072024000045015682ID1108467203
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.