Tokyo
Japanese shares on Tuesday recorded their worst day in more than two weeks, as heavyweight tech stocks fell after a selloff in global markets, although travel-related companies remained firm on the day that Japan re-opens its borders to regular tourism.
The Nikkei share average. N225 fell 2.64% after returning to trade from a three-day weekend. It opened well below the 27,000 level and extended losses to close at 26,401.25.
The broader Topix index .TOPX fell 1.86%, its worst day since Sept. 26.
Most of the indices’ losses came in the morning session, with a volatile afternoon of trading for the yen JPY=EBS making little impact.
The Japanese currency fell as far as 145.86 to the US dollar at one point, its lowest level since it hit 145.90 on Sept. 22, which that day prompted the Bank of Japan to intervene to prop up the currency for the first time since 1998.
The Philadelphia semiconductor index. SOX lost 3.5% overnight after US President Joe Biden announced a new set of export controls last week that could stymie China’s chipmaking industry.
“Washington’s moved to further restrict China’s access to US technology, which adds to signs of slowing global chip demand,” Saxo Bank market strategist Redmond Wong wrote in a note.
The move seemed to weigh on Japanese companies involved in semiconductor production. Chipmaking equipment manufacturer Tokyo Electron 8035.T dropped 5.49% and industrial robot maker Fanuc Corp 6954.T fell 3.93%.
Electric motor manufacturer Nidec Corp 6594.T declined 9.34%, the biggest loss on the Nikkei, after a report that it engaged in inappropriate handling of share buybacks. The company denied the report and said it was considering legal action.
“It looks like the company has been tainted by the share buyback allegations,” said a strategist at a domestic securities firm.
