{"id":14948,"date":"2024-09-09T02:59:34","date_gmt":"2024-09-09T02:59:34","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=14948"},"modified":"2024-09-09T02:59:34","modified_gmt":"2024-09-09T02:59:34","slug":"japans-nikkei-drops-3-as-tech-stocks-track-wall-streets-decline","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/japans-nikkei-drops-3-as-tech-stocks-track-wall-streets-decline\/","title":{"rendered":"Japan&#8217;s Nikkei drops 3% as tech stocks track Wall Street&#8217;s decline"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Japan&#8217;s Nikkei index fell 3.02%, breaking below 36,000 for the first time since mid-August.<\/li>\n\n\n\n<li>Chipmaker Renesas and Lasertec fell sharply by 7.72% and 8.15%, respectively.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Japan&#8217;s Nikkei 225 index dropped 3.02% on Monday, falling to 35,292.62 as of 0050 GMT, dragged down by technology and financial stocks.<a href=\"https:\/\/www.vtmarkets.com\/analysis\/japans-nikkei-drops-to-three-week-low-following-wall-street-sell-off\/\"> The drop followed a similar sharp decline on Wall Street, where tech stocks had experienced broad sell-offs<\/a>. This marks the first time since August 13 that the Nikkei has broken below the key 36,000 mark. The broader Topix index also fell 2.84%, reflecting widespread losses across the market.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/09\/Nikkei225-9Sept-1024x473.jpeg\" alt=\"\" class=\"wp-image-14949\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">See: Japan&#8217;s Nikkei seen trading at 35653.85 on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a>.<\/p>\n\n\n\n<h1 class=\"wp-block-heading has-medium-font-size\"><strong>Tech stocks hit hard by global weakness<\/strong><\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Semiconductor-related companies were among the biggest losers, led by Lasertec, which fell 8.15%. The company&#8217;s sharp drop was mirrored by Renesas Electronics, a chipmaker that saw its stock fall by 7.72%. The tech sector in Japan followed Wall Street&#8217;s overnight decline, where fears over interest rates and slowing demand for semiconductors had sparked a sell-off in major US tech stocks.<br><br>Also read: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/japans-nikkei-falls-after-wall-streets-tech-stocks-drop\/\">Japan\u2019s Nikkei falls after Wall Street\u2019s tech stocks drop<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Financial sector struggles as bond yields drop<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The financial sector saw heavy losses, as falling bond yields abroad reduced earnings potential for banks and insurers. Insurance stocks were the worst performers on the Tokyo Stock Exchange, with the sector falling 4.58%. Banks were not far behind, losing 4.2% on the day. The decline in bond yields dampens expectations for investment earnings, making financial stocks particularly vulnerable in the current environment.<br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Automakers affected by strong yen<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Automotive stocks also took a hit, with shares in this sector falling 4.09%. <a href=\"https:\/\/x.com\/economics\/status\/1831489173804494932\">A stronger yen added to the sector&#8217;s woes, reducing the value of overseas earnings and putting pressure on exporters<\/a>. The yen&#8217;s recent strength has made it harder for automakers to remain competitive globally, adding to the sell-off in this industry.<\/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\">Japanese stocks are likely to extend losses on Thursday as a stronger yen weighs on the earnings outlook for exporters while bond yields look set to decline in a headwind for banks <a href=\"https:\/\/t.co\/2174SgTTb9\">https:\/\/t.co\/2174SgTTb9<\/a><\/p>&mdash; Bloomberg Economics (@economics) <a href=\"https:\/\/twitter.com\/economics\/status\/1831489173804494932?ref_src=twsrc%5Etfw\">September 5, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In this environment, tech stocks may remain under pressure as global markets remain uncertain about the outlook for interest rates and demand for semiconductors. Meanwhile, the yen\u2019s strength could continue to weigh on Japan\u2019s exporters, particularly in the automotive sector.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><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>Key points: Japan&#8217;s Nikkei 225 index dropped 3.02% on Monday, falling to 35,292.62 as of 0050 GMT, dragged down by technology and financial stocks. The drop followed a similar sharp decline on Wall Street, where tech stocks had experienced broad sell-offs. This marks the first time since August 13 that the Nikkei has broken below<a href=\"https:\/\/www.global-vtrader.com\/en\/analysis\/japans-nikkei-drops-3-as-tech-stocks-track-wall-streets-decline\/\" class=\"read-more\">Continue Reading<\/a><\/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":[28,30],"class_list":["post-14948","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-dollar","tag-yen"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14948","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=14948"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14948\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=14948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=14948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=14948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}