(1) Japan's Nikkei closed nearly 1% lower on Wednesday, weighed down by a tumbling drop in shares of Uniqlo parent Fast Retailing and a drop in Wall Street stocks overnight.
(2) Technology stocks followed the decline of their U.S. peers.
(3) The Nikkei 225 index closed down 0.97% at 39,451.85 points, after falling to its lowest level since March 18 at 39,217.04 points earlier in the session.
(4) Fast Retailing, an index heavyweight, fell by 3.34%, becoming the biggest drag on the broader market.
(5) The stock retreated from an all-time high hit earlier this week after the company announced late Tuesday that Uniqlo stores in Japan had seen their first year-over-year sales decline in three months.
(6) Big tech stocks fell, with chip test equipment maker Advantest down 2.14%. Nintendo fell more than 4%. SoftBank Group, an AI-focused start-up investor, fell 1.24%.
(7) The Topix stock price index, which has a lower technology weight, closed 0.29% lower, with the growth index down 0.8% and value stocks up 0.2%.
(8) Shoki Omori, chief strategist of Mizuho Securities Japan, said that at the start of the new fiscal year this month, the Nikkei index was also affected by profit-taking.
(9) "But I think there will be dip buying and the Nikkei [this month] is likely to test 41,000 again, unless U.S. yields continue to move higher and tech stocks continue to underperform." I don't think the Nikkei will fall below 37,500 points. For the Bank of Japan, maintaining accommodative financial conditions should be the way to support the market at a time when external factors are strongly depressing the stock market."
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The Nikkei closed 1% lower, weighed down by a sharp fall in Fast Retailing and an overnight decline in U.S. stocks
(1) Japan's Nikkei closed nearly 1% lower on Wednesday, weighed down by a tumbling drop in shares of Uniqlo parent Fast Retailing and a drop in Wall Street stocks overnight. (2) Technology stocks followed the decline of their U.S. peers. (3) The Nikkei 225 index closed down 0.97% at 39,451.85 points, after falling to its lowest level since March 18 at 39,217.04 points earlier in the session. (4) Fast Retailing, an index heavyweight, fell by 3.34%, becoming the biggest drag on the broader market. (5) The stock retreated from an all-time high hit earlier this week after the company announced late Tuesday that Uniqlo stores in Japan had seen their first year-over-year sales decline in three months. (6) Big tech stocks fell, with chip test equipment maker Advantest down 2.14%. Nintendo fell more than 4%. SoftBank Group, an AI-focused start-up investor, fell 1.24%. (7) The Topix stock price index, which has a lower technology weight, closed 0.29% lower, with the growth index down 0.8% and value stocks up 0.2%. (8) Shoki Omori, chief strategist of Mizuho Securities Japan, said that at the start of the new fiscal year this month, the Nikkei index was also affected by profit-taking. (9) "But I think there will be dip buying and the Nikkei [this month] is likely to test 41,000 again, unless U.S. yields continue to move higher and tech stocks continue to underperform." I don't think the Nikkei will fall below 37,500 points. For the Bank of Japan, maintaining accommodative financial conditions should be the way to support the market at a time when external factors are strongly depressing the stock market."