Nikkei and Topix Correct Slightly, But Still Post Weekly Gains
Japanese stocks closed lower on Friday (May 8), with the Nikkei 225 down 0.19% to 62,713 and the Topix down 0.29% to 3,829, as market sentiment was weighed down by the renewed escalation of the US-Iran conflict in the Strait of Hormuz, which has fueled geopolitical concerns.
Nevertheless, weekly performance remained solid. The Nikkei rose 5.38% and the Topix gained 2.7% for the week, supported by the previous rally in technology stocks and AI-related companies.
On the corporate front, Sony announced a buyback plan of up to ¥500 billion and projected an 11% increase in operating profit for the fiscal year ending March 2027, driven by growth in its music and smartphone image sensor businesses. Meanwhile, Nintendo announced it would raise the retail price of the Switch 2 after expecting weak sales of its flagship console amid a memory chip shortage.
In the automotive sector, Toyota reported a 49% decline in fourth-quarter operating profit due to the impact of US tariffs on performance. Going forward, market participants are likely to monitor developments in geopolitical risks that could potentially alter risk appetite, as well as dynamics in the technology sector and exporters, which are sensitive to global sentiment. (asd)
Source: Newsmaker.id
