Nikkei Stock Average Falls as Global Economic Uncertainty Increases
TOKYO (Reuters) – On the morning of July 6, the Nikkei Stock Average experienced a significant decline of 405.51 yen, reaching 32,933.19 yen in the Tokyo stock market. This downturn was primarily driven by uncertainties surrounding the global economy and fears of prolonged tightening of US monetary policy. The previous day’s decline in the US stock market also contributed to the sell-off dominating the Tokyo market. As a result, the Nikkei fell below the psychological milestone of 33,000 yen, causing concerns among investors.
In the initial trading hours, the Nikkei showed signs of weakness with a decline of 280 yen. Subsequently, the downward trend accelerated, pushing the stock price further down to 32,857.94 yen, approximately 480 yen lower than the previous business day. The decline in US semiconductor stocks played a crucial role in this drop, as major semiconductor-related stocks, which significantly contribute to the index, experienced weakness. However, at the close, the market showed some resistance to further decline.
Commenting on the situation, Masahiro Yamaguchi, the general manager of investment research at SMBC Trust Bank, highlighted concerns about supply and demand dynamics affecting the market, particularly in relation to the selling of exchange-traded funds (ETFs). Yamaguchi noted that the market may see some bargain buying if it breaks below the 33,000 yen level, suggesting that the lower price could attract buyers. Looking ahead, Yamaguchi anticipated a strong stalemate in the market until the release of US employment statistics over the weekend.
In other market news, the Tokyo Stock Price Index (TOPIX) concluded the morning trading session with a 0.82% decline, standing at 2287.07 points. The primary market trading value on the Tokyo Stock Exchange reached 1,752,994 million yen. Among the 33 industries listed on the exchange, only three experienced price increases: mining, air transportation, and transportation equipment. Conversely, prices fell in 30 industries, including machinery, other finance, and steel.
Examining individual stocks, Tokyo Electron saw a decline of 3.2%, while Advantest fell by 1.7%. However, automotive stocks remained relatively stable, benefiting from factors such as increased sales of leading car manufacturers in the United States during the April-June period.
In the primary market of the Tokyo Stock Exchange, out of 1,834 listed stocks, 477 experienced price increases (26%), 1,298 saw declines (70%), and 59 remained unchanged (3%).
In the morning of July 6, the Nikkei Stock Average fell 405.51 yen from the previous business day to 32,933.19 yen in the Tokyo stock market. This photo was taken at the Tokyo Stock Exchange in Tokyo in October 2020. (Reuters/Kim Kyung-Hoon)
[TOKYO (Reuters)]- The Nikkei average fell 405.51 yen from the previous business day to 32,933.19 yen on the Tokyo stock market in the morning. Due to uncertainty about the future of the global economy and concerns about a prolonged tightening of US monetary policy, the US stock market continued to decline the previous day, and selling dominated the Tokyo market. The Nikkei ended the morning trading below the psychological milestone of 33,000 yen.
The Nikkei started weak with a fall of 280 yen. After that, the downside margin widened, and the stock price fell to 32,857.94 yen, about 480 yen lower than the previous business day. The previous day’s decline in US semiconductor stocks pushed the index down as semiconductor-related stocks, a major contributor to the index, were weak. He was a little reluctant to fall towards the close.
Masahiro Yamaguchi, general manager of investment research at SMBC Trust Bank, said, “The downturn in supply and demand, which has been a concern recently, appears to be weighing on the market, such as selling exchange-traded funds (ETFs ). ) to produce distributions.” . On the other hand, if it breaks below 33,000 yen, there will be some bargain buying, so the lower price seems to be solid. In the second half of the day, Mr. Yamaguchi said, “I think the market will be in a strong stalemate,” before the US employment statistics are released at the weekend.
TOPIX ended the morning trading down 0.82% at 2287.07 points. The Tokyo Stock Exchange’s primary market trading value was 1,752,994 million yen. Of the 33 industries on the Tokyo Stock Exchange, prices rose in three industries: mining, air transportation, and transportation equipment. Prices fell in 30 industries, including machinery, other finance, and steel.
Individually, Tokyo Electron fell 3.2% and Advantest fell 1.7%. On the other hand, auto stocks remained firm due to factors such as an increase in the number of cars sold in the United States by the world’s leading car manufacturers in the April-June period.
In the primary market of the Tokyo Stock Exchange, 477 stocks rose (26%), 1,298 stocks fell (70%), and 59 stocks (3%) remained unchanged.
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