Japanese Stocks Drop on Weak Chip Companies
Japanese stocks fell for a second day on Thursday as signs of weakness in the global semiconductor market weighed on chip-related stocks while rising debt yields dragged down real estate and public utilities.
The Topix index fell 0.7 percent to 2,750.48 as of 9:41 a.m. in Tokyo. The Nikkei index fell 0.5 percent to 39,771.86.
Toyota Motor Corp. was the biggest contributor to the Topix decline, dropping 1.5 percent. Of the 2,123 stocks in the index, 482 rose and 1,504 fell, while 137 were unchanged.
A decline in the Philadelphia Semiconductor Stock Index hurt chip-related companies such as Tokyo Electron.
Bond yields rose globally after Federal Reserve officials decided to move more slowly on interest rates in the coming months, according to minutes from their meeting last month. That has investors in a wait-and-see mood ahead of Friday’s U.S. jobs report, which could provide more clues on the Fed’s interest rate outlook.
The 10-year U.S. Treasury yield neared a peak of 5% reached in October 2023, before falling back on Wednesday, while Japanese yields rose to their highest since July 2011 on Thursday.
“Against the backdrop of rising interest rates in Japan and the U.S., real estate and public utility stocks with large debts are likely to be sold off reflexively,” said Takashi Ito, senior strategist at Nomura Securities.
Source: Bloomberg
