{"id":14788,"date":"2024-08-27T02:25:35","date_gmt":"2024-08-27T02:25:35","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=14788"},"modified":"2024-08-27T02:25:35","modified_gmt":"2024-08-27T02:25:35","slug":"japans-nikkei-falls-after-wall-streets-tech-stocks-drop","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/japans-nikkei-falls-after-wall-streets-tech-stocks-drop\/","title":{"rendered":"Japan&#8217;s Nikkei falls after Wall Street&#8217;s tech stocks drop"},"content":{"rendered":"\n<p><strong>Key points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Japan&#8217;s Nikkei drops 0.5% to 37,936.68, influenced by Wall Street&#8217;s tech sector downturn.<\/li>\n\n\n\n<li>Strengthening yen impacts market sentiment, reaching a three-week high against the dollar.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Japan&#8217;s Nikkei index edged down 0.5% in early trading on Tuesday, hitting 37,936.68 by 0009 GMT. This decline mirrors the losses seen on Wall Street, where technology stocks led the way downward. <\/p>\n\n\n\n<p>The broader Topix index also experienced a 0.2% drop, reflecting the cautious mood in the market.<\/p>\n\n\n\n<h1 class=\"wp-block-heading has-medium-font-size\"><strong>Tech stocks drag Nikkei lower, following U.S. market slump<\/strong><\/h1>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/08\/20240827-101704-1024x461.jpg\" alt=\"The Nikkei 225 chart on vtmarkets.com has been trading below key Moving Averages (5, 10, 30), which are currently sloping downward, indicating sustained bearish momentum. The MACD indicator further confirms this negative sentiment, with the MACD line below the signal line and the histogram showing increasing bearish momentum. This suggests that the index could face further downside pressure in the near term.\" class=\"wp-image-14789\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>See: Japan\u2019s Nikkei 225 drops, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>The charts tell a more detailed story. The Nikkei 225 index experienced a slide, closing at 37,995.15, down by 0.68%. This decline was primarily driven by weakness in technology shares, which have been closely mirroring the performance of their U.S. counterparts. <\/p>\n\n\n\n<p>On Monday, the S&amp;P 500 also closed lower, with Nvidia\u2014a key player in the artificial intelligence sector\u2014dipping ahead of its upcoming quarterly report. The anticipation of Nvidia&#8217;s earnings, which are expected to show significant market-moving potential, has weighed heavily on tech stocks globally, including those in Japan.<\/p>\n\n\n\n<p>Nikkei 225 has been trading below key Moving Averages (5, 10, 30), which are currently sloping downward, indicating continued bearish momentum. The MACD indicator further confirms this negative sentiment, with the MACD line below the signal line and the histogram showing increasing bearish momentum. The index could face further downside pressure in the near term.<\/p>\n\n\n\n<p>Market participants should keep an eye on the support level around 37,817.15, as a break below this level could signal additional declines. On the upside, resistance near 38,686.15 may cap any short-term recoveries. The market will likely remain sensitive to movements in the U.S. tech sector, particularly as Nvidia\u2019s earnings report approaches.<\/p>\n\n\n\n<p>This move <a href=\"https:\/\/x.com\/business\/status\/1828194385323860385\">set the tone for the tech-heavy Nasdaq, which also saw declines<\/a>. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The world\u2019s largest technology companies dragged down stocks after a rally put the market on the brink of its all-time high: Here\u2019s your Evening Briefing <a href=\"https:\/\/t.co\/HRPsHtaHN6\">https:\/\/t.co\/HRPsHtaHN6<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1828194385323860385?ref_src=twsrc%5Etfw\">August 26, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Japanese tech giants like Tokyo Electron and Advantest, both heavily involved in the semiconductor industry and linked to Nvidia, contributed to the downward pressure on the Nikkei.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Stronger yen adds pressure on Japan&#8217;s export-driven marke<\/strong>t<\/h2>\n\n\n\n<p>In addition to the tech-driven sell-off, movements in the foreign exchange market added to the bearish sentiment. The <a href=\"https:\/\/www.vtmarkets.com\/analysis\/dollar-steady-as-markets-brace-for-powell-bojs-ueda-aims-to-stabilise-yen\/\">yen strengthened to a three-week high of 143.45 against the dollar on Monday<\/a>, creating headwinds for Japan&#8217;s export-heavy economy. A stronger yen typically makes Japanese goods more expensive abroad, which can negatively impact the profitability of companies reliant on foreign sales.<\/p>\n\n\n\n<p>Looking ahead, the market may remain cautious, especially with Nvidia&#8217;s quarterly report on the horizon. Investors will likely keep a close eye on the performance of major tech stocks, both in Japan and the U.S., as these movements could continue to shape sentiment across global markets.<br><br><strong>You might be interested: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/nvidia-earnings-to-gauge-the-strength-of-ai-driven-market-rally\/\">Nvidia earnings to gauge the strength of AI-driven market rally<\/a><\/strong><\/p>\n\n\n\n<p>A cautious forecast suggests that if the yen maintains its strength and Wall Street&#8217;s tech sector fails to recover, the Nikkei could see further pressure. Traders may also watch for any signs of intervention from the Bank of Japan, especially if the yen&#8217;s appreciation continues.<\/p>\n\n\n\n<p>The broader implications for global markets hinge on how these tech giants perform in the near term, as their influence on indices like the Nikkei remains strong.<\/p>\n\n\n\n<p><strong>Start trading now \u2014 click <\/strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\"><strong>here<\/strong><\/a><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Japan&#8217;s Nikkei index edged down 0.5% in early trading on Tuesday, hitting 37,936.68 by 0009 GMT. This decline mirrors the losses seen on Wall Street, where technology stocks led the way downward. The broader Topix index also experienced a 0.2% drop, reflecting the cautious mood in the market. -vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[31,37,33],"class_list":["post-14788","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-indices","tag-nikkei","tag-stocks"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14788","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=14788"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14788\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=14788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=14788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=14788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}