Nikkei 225 trending points
- Nikkei dropped over 0.65 percent on Thursday (March 7th), hitting a one-week low, largely catalyzed by a plunge in the financial sectors, while Topix also shed 0.84 percent
- Following a tottered Wall St. yesterday (March 6th), Japanese chipmakers had mostly dropped by their US peers
- Financial sectors and banks tottered, as Mizuho Financial Group slashed profit outlook
- Renesas toppled after production stalled at six plants
Nikkei hit one-week low, as chipmakers and financial sector waged
On Thursday, the 7thof March 2019, Japan’s Nikkei 225 had nudged to a one-week low, while chipmakers had been echoing the leads of their US peers’ yesterday’s loss. Adding further strains into the existing wobbling trickles, the financial sectors had retreated after Muzuho Financial Group had slashed the profit outlook.
The Nikkei share average had closed the day 0.65 percent lower to 21,456.01, after dwindling as lower as 21,402.12 over the intra-day trading, its lowest level since February 28th.
Nikkei 225 daily price chart
While Wall St. had been falling for fourth straight day including today’s start, Japan’s market had also been guzzling a selling pressure, after rising to a three-month high earlier this week, over optimism of a Sino-US trade deal by March 27th.
While Chipmaker Sumco Corp from Silicon Valley lost 6.1 percent yesterday, Japan’s chip equipment manufacturer Tokyo Electron and Advanced Corp lost 2.9 and 2.4 percent respectively.
As Philadelphia semiconductor index fell for second straight day in a row yesterday, largely galvanized by a slumped Micron, the Japanese high-tech companies had also followed the lead of their US peers.
Apart from the chipmakers, the financial sector also tottered on Thursday (March 7th), with Mizuho Financial Group shed 1.5 percent, Mitsubishi UFJ Financial Group lost 1.6 percent and Sumitomo Muisui Financial Group had shredded off 1.7 percent of its earlier gains.
Banks started to retreat on Thursday (March 7th) after Mizuho Financial Group had slashed its entire-year profit outlook by 86 percent. The Financial Group had also posted a restructuring cost of $6 billion as an effort to revamp its securities portfolio.
Among 33 subsectors of Tokyo stock exchange, 28 had ended the day deep in the red, while non-ferrous metals had also posted a plunge.
Although the Nikkei 225 had been drooled in to a one-week low today, the near-term outlook does not appear gloomier and the market may regain today’s loss next week over revamped optimism of a trade deal and stronger US economy.
However, Nikkei 225 may have posted a loss again tomorrow, as its US peers had started today’s market lower over a waning trade optimism and traders had been on the lookout for a new stimulus, which could pivot the market in a near-term outlook.
So far, analysts are predicting another downswing for the next few days, yet the losses are likely to ease next week.
Read more on Nikkei 225 here
[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]