Tokyo stocks close lower for second day on rising rate concerns, though TOPIX extends winning streak to 9 sessions

The Tokyo stock market saw continued uncertainty on the 1st with buyers and sellers evenly matched, leaving the Nikkei Average slightly lower.

The Nikkei Stock Average closed down 96.59 yen from the previous session at 66,215.34 yen, marking a second consecutive decline. Trading volume on the Prime Market came to an estimated 2,278.26 million shares, with turnover estimated at 7,501.6 billion yen. Advancers numbered 845 against 662 decliners, with 49 stocks unchanged.

Although the Nikkei fell for a second straight session, the index recovered from early lows and briefly moved into positive territory before softening late in the afternoon. The market took its cue from Wall Street, where the Dow Jones Industrial Average and other major indices closed lower across the board. Investors remained on edge, monitoring rising long-term interest rates in both Japan and the U.S. In the near term, oil prices climbed after the U.S. carried out its first military strike against Iran in about a month, stoking inflation fears and putting upward pressure on interest rates. In Asian equity markets, South Korea's KOSPI and Taiwan's Weighted Index posted solid gains, prompting short-covering in semiconductor stocks that temporarily lifted the Nikkei, though buying momentum failed to hold. Nevertheless, advancers outnumbered decliners among individual stocks, accounting for about 54% of the total. Meanwhile, the TOPIX remained firm throughout the session - except briefly at the open - and extended its winning streak to nine consecutive gains, edging closer to its all-time high.

Among individual stocks, Kioxia Holdings Corporation <285A> held firm, while TAIYO YUDEN CO., LTD. <6976> and Murata Manufacturing Co., Ltd. <6981> showed resilient price action. SoftBank Group Corp. <9984> and Nintendo Co., Ltd. <7974> were steady. TOYOTA MOTOR CORPORATION <7203> pushed higher, with NEC Corporation <6701> and Tokio Marine Holdings, Inc. <8766> also seeing buying interest. SUMITOMO CHEMICAL COMPANY, LIMITED <4005> led percentage gainers, while Kyushu Electric Power Company, Incorporated <9508> surged sharply, with utility stocks broadly in demand. ROKKO BUTTER CO., LTD. <2266> and FURUYA METAL CO., LTD. <7826> posted notable gains. SQUARE ENIX HOLDINGS CO., LTD. <9684> and RACCOON HOLDINGS, Inc. <3031> rose sharply as well.

On the downside, semiconductor equipment stocks were weak, with ADVANTEST CORPORATION <6857>, Tokyo Electron Limited <8035>, DISCO CORPORATION <6146>, and Lasertec Corporation <6920> all declining. SUMCO CORPORATION <3436> also fell. Recruit Holdings Co., Ltd. <6098> and FAST RETAILING CO., LTD. <9983> were weighed down by selling, and KEYENCE CORPORATION <6861> lost ground. Net Protections Holdings, Inc. <7383> tumbled, while VECTOR INC. <6058>, Meiko Electronics Co., Ltd. <6787>, and MEDLEY, INC. <4480> saw significant declines.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.