Japanese Stocks Slip, Technology Stocks Leading the Losses
Japanese stocks fell sharply on Thursday, led by a plunge in electronics and technology stocks. The Nikkei index fell 1.4% to 48,612.62, having previously surged on hopes for the economic policies of new Prime Minister Sanae Takaichi. However, that optimism began to fade as global concerns resurfaced.
Technology stocks were the main market underdogs. Tokyo Electron plunged 3.8%, SoftBank Group fell 3.2%, and Renesas Electronics slumped 3.6%. Investors took profits after strong gains in recent days, also responding to escalating trade tensions between the United States and China and Washington's new sanctions on the Russian oil giant.
The US dollar also strengthened against the yen, reaching 152.13 from 151.80 at the Tokyo market close on Wednesday, adding to pressure on Japanese exporter stocks. The strengthening dollar has made Japanese products more expensive abroad, squeezing the potential profits of large export-based companies.
Market players are now awaiting concrete steps from the Takaichi administration to stabilize the economy. Many hope that new fiscal policies or stimulus measures will soon be announced to revive market sentiment. For now, investors are opting for caution amid global turmoil and uncertainty about the policy direction of the new Japanese government.
Key points:
The Nikkei fell 1.4% as technology stocks tumbled, amid unclear expectations for Takaichi's policies and pressure from US sanctions and global trade tensions. (asd)
Source: Newsmaker.id
