Japan’s Nikkei index falls as chip stock prices fall before BOJ decision
Many semiconductor-related stocks suffered heavy losses after Nvidia’s annual developer conference failed to provide new momentum to the rise in artificial intelligence-focused global chip stocks.
Energy stocks were the top performers after crude oil prices rose 2% overnight.
The Nikkei index was down 0.8% at 39,429,73 as of 0130 GMT, giving up some of Monday’s 2.7% surge as investors cheered media reports providing further insight into what BOJ policymakers will do on Tuesday.
The broader Topix eased 0.2%, with the growth subindex down 0.5% while value stocks were flat.
“With every media outlet basically reporting the end of negative interest rates, yield curve control, and ETF buying (you could call it the whole set of three), the market has already fully priced in this outcome,” said Kazuo Kamitani, equity strategist at Nomura. “It was reflected in,” he said. stock. He said the updated dot chart would be a near-term “focus” when the Federal Reserve’s own policy meeting concludes on Wednesday. On this day, Japanese markets are closed for a public holiday. There is no set time for the BOJ’s policy announcement, but it came around the time stock markets recently reopened at 3:30 PM (GMT).
Senior BOJ officials, including Governor Kazuo Ueda, emphasized that bond purchases will continue even when yield curve control ends and that the central bank will not engage in consecutive interest rate hikes after leaving negative interest rates.
Advantest, a chip testing equipment maker that counts Nvidia among its customers, was the worst performer in the Nikkei index on Tuesday, falling 2.5%.
AI-focused startup investor SoftBank Group fell 0.7%.
The biggest obstacle to the Nikkei index is Fast Retailing, the operator of Uniqlo stores, which has a particularly high weight in the index. Fast Retailing’s stock price fell 1.8%.
Inpex was the Nikkei’s best-performing energy stock, up 2.3%. Among top sectors, miners, including oil exploration companies, rose 2.2%, and oil and coal producers rose 1.2%.
