Nikkei Sudden Sharp Drop, Chip and Metal Stocks Leading the Losses
The Nikkei index fell 1.7% to 50,428.33 at the start of trading on Friday. This negative sentiment came after US technology stocks fell sharply overnight, contagious to the Japanese market. Selling pressure was immediately felt in sectors sensitive to global cycles.
Metal stocks and chip-related companies were the main drags on the index. JX Advanced Metals fell around 4.6%, Tokyo Electron weakened 4.9%, and SoftBank Group plunged around 7.3%. The sharp movements in these major stocks made it difficult for the Nikkei to maintain its high levels.
On the exchange rate front, USD/JPY was trading around 154.72, slightly lower than Thursday's close of 154.95. The yen's subdued movements suggest the market is more focused on stock movements and risk sentiment, rather than currency volatility.
Looking ahead, market participants will be closely monitoring the financial reports from Toray Industries and Dai-ichi Life Holdings, which will be released today. Investors are also awaiting policy measures from Prime Minister Sanae Takaichi to support the economy. Issuer performance results and the direction of government policy will significantly determine whether pressure on the Nikkei persists or begins to ease in the near future.
Source: Newsmaker.id
