Nikkei Slightly Weakens, Semiconductor Stock Rally Begins to Falter
Japanese stocks closed slightly lower on Wednesday (July 22nd) after volatile trading throughout the session. The Nikkei 225 index fell 0.18% to 66,115, reversing earlier gains as the semiconductor stock rally began to lose steam.
Investors are also adopting a cautious stance ahead of the earnings reports of major US technology companies, including Alphabet and Tesla. These results will be a key factor in assessing the outlook for the global technology sector.
Market sentiment was also affected by rising oil prices. The United States launched strikes on Iranian targets for the 11th consecutive night, while President Donald Trump played down the chances of imminent talks with Tehran. This situation has heightened concerns about geopolitical risks and energy inflation.
In terms of individual stock movements, Tokyo Electron fell 0.9%, SoftBank Group weakened 0.8%, and Fast Retailing fell 2.8%. Conversely, several stocks continued to gain, such as Kioxia Holdings, which rose 5.3%, Taiyo Yuden (6.7%), and Murata Manufacturing (4%).
In terms of market impact, the Nikkei's weakening indicates that investors remain selective about Japanese technology stocks after the previous rally. Rising oil prices and the US-Iran conflict could add to inflationary pressures, while Japan's trade deficit in June is an additional burden on sentiment. If US big tech reports disappoint, pressure on Japanese technology stocks could continue. (asd)
Source: Newsmaker.id
