(MENAFN) Japan's Nikkei share average closed slightly lower on Tuesday, continuing its losing streak for the fifth consecutive session. The index fell by a marginal 0.01 percent, losing five points to settle at 39,594.39 points. This came after an earlier rise of up to 0.8 points in the session, yet it failed to breach the psychologically significant 40,000-point mark. Market caution was primarily driven by concerns over a stronger yen, which overshadowed gains in the chip sector. A stronger yen poses a potential threat to the earnings of major exporters, a concern that is growing as the earnings season begins to intensify this week. By the end of Tuesday, the yen was trading at 156.20 to the dollar, strengthening from 157.50 at the close of last week.

On Monday, the Nikkei index had dropped to a three-week low of 39,519.39 points, following a record high of 42,426.77 on July 11. Despite the Nikkei's slight decline, the broader Topix index managed to rise by 0.21 percent, buoyed by a 0.48 percent increase in value stocks, whereas growth stocks saw a modest gain of just 0.1 percent. The chip sector emerged as the top gainer on the Nikkei, benefiting from the positive performance of their U.S. counterparts at the close of trading on Monday. Notably, Advantest, a producer of chip testing equipment and supplier to Nvidia, saw its shares rise by 2.87 percent. Meanwhile, Tokyo Electron, a manufacturer of chip-making equipment, experienced a 1.32 percent increase in its stock price.

The shipping sector led the Tokyo Stock Exchange's 33 sub-indexes with an impressive 6.62 percent jump, significantly outperforming the banking index, which posted a 1.59 percent rise. This broad performance indicates sector-specific optimism amid the overall cautious market sentiment driven by currency fluctuations and export concerns. 

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