JAPAN’S Nikkei share average dropped for a third straight day on Wednesday (Apr 17) to end below 38,000 points for the first time in two months as tensions in the Middle East weighed on sentiment and investors took profit before the earnings season heats up.
The Nikkei finished down 1.3 per cent at 37,961.80, its lowest closing level since Feb 14, and was on track for its biggest weekly loss since December 2022.
The broader Topix declined 1.3 per cent to 2663.15.
The benchmark index opened higher but failed to hold on to its gains as caution reigned, like it has through the week, due to the uncertainty over how the situation in the Middle East will unfold.
At the same time, investors appeared to be trading carefully as Japan’s earning season kicks into gear, analysts said, with key companies such as chip-testing equipment maker Advantest due to report next week.
“We see some market weakness this season” as companies publish guidance for the new fiscal year, leading to some profit-taking ahead of earnings, said Kenji Abe, an analyst at Daiwa Securities.
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The Nikkei bled deep, with only 32 of its 225 constituents climbing, while chip-related companies led the declines.
Advantest slid 4.5 per cent, while Lasertec slumped 7.9 per cent and Tokyo Electron fell 1 per cent to become the biggest laggards on the index.
Fanuc Corp, which makes factory automation machinery, fell 3.3 per cent, while AI-focused startup investor SoftBank Group declined 1.3 per cent.
The few gainers included Resonac Holdings, which jumped 12 per cent after the chemical company raised its revenue forecast for 2024. REUTERS
