Japan’s Nikkei falls as profit-taking hits major shares

The Nikkei stock index briefly fell more than 2 percent on Friday as investors locked in profits following weaker-than-expected earnings from heavyweight technology shares, News.Az reports, citing Kyodo.

The 225-issue Nikkei Stock Average ended the session down 1,244.76 points, or 1.99 percent, from Thursday at 61,409.29. The broader TOPIX finished 15.30 points, or 0.39 percent, lower at 3,863.97.

On the Tokyo Stock Exchange’s Prime Market, major decliners included nonferrous metal, chemical, and glass and ceramics-related stocks.

In currency trading, the U.S. dollar briefly climbed to the upper 158 yen range in Tokyo, attracting safe-haven demand amid growing concerns about the global economic outlook. Benchmark West Texas Intermediate crude oil futures also remained above $100 per barrel in after-hours trading.

At 5 p.m., the dollar was quoted at 158.44–45 yen, compared with 158.35–45 yen in New York and 157.92–93 yen in Tokyo at 5 p.m. Thursday.

The euro was traded at $1.1636–1638 and 184.37–41 yen, compared with $1.1663–1673 and 184.78–88 yen in New York and $1.1707–1708 and 184.88–92 yen in Tokyo late Thursday afternoon.

The yield on the benchmark 10-year Japanese government bond ended up 0.070 percentage point from Thursday’s close at 2.700 percent, marking its highest close since comparable data became available in December 1998.

It also rose to 2.730 percent at one point, the highest level since May 1997, amid concerns that Japan’s fiscal position could worsen after government sources said officials are considering a supplementary budget for fiscal 2026 to offset the impact of high crude oil prices.

Finance Minister Satsuki Katayama said on Friday that bond selling was also strong overseas, including in the United States, and noted that it is having a “synergistic effect.”

Stocks had initially opened higher after reports that the United States approved Nvidia Corp. chip sales to Chinese companies, boosting artificial intelligence and semiconductor-related shares.

However, Fujikura, a major supplier of cables for AI data centers, plunged after issuing a weaker-than-expected earnings forecast on Thursday, triggering profit-taking in major technology stocks after recent gains.

News.Az 

By Nijat Babayev