Japan's Nikkei posts one-month closing low on rate, FX uncertainty

[TOKYO] Japan’s Nikkei share average fell for a fourth consecutive session on Thursday (Sep 3) and posted its lowest close in a month, as uncertainty over interest rates and currencies kept investors away from risk assets.

The Nikkei 225 Index ended 0.17 per cent lower at 64,214.48 after struggling for direction for much of the session. The broader Topix rose 0.5 per cent to 4,102.04.

“Market attention is focused on interest rates and foreign exchange, and uncertainty around those areas is prompting selling in risk assets,” said Naoto Takahashi, analyst at Aizawa Securities.

Japanese chip- and AI-related shares were mixed. Chip-testing equipment maker Advantest fell 0.8 per cent and cable and optical fibre producer Fujikura shed 2.73 per cent, while memory chipmaker Kioxia rose 1.31 per cent and semiconductor equipment maker Tokyo Electron edged 0.36 per cent higher.

US Treasury yields slipped from multi-year highs overnight, while 30-year Japanese government bond yields dropped as much as 10 basis points on Thursday.

Oil prices edged lower with no signs of fresh strikes in the latest clash between the United States and Iran.

Japan’s energy explorer sector slipped 3.26 per cent, making it the worst performer among the Tokyo bourse’s 33 sector sub-indexes.

The yen extended gains as investors repriced domestic rate expectations in a more hawkish direction, strengthening 1.24 per cent against the dollar to 156.71.

Market breadth was positive, with 141 Nikkei constituents rising and 82 falling, but declines in a handful of heavily weighted stocks dragged the benchmark lower.

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Among the biggest percentage decliners on the Nikkei were top Japanese oil and gas explorer Inpex, down 4 per cent, and industrial automation and controls company Yokogawa Electric, down 3.75 per cent.

Furnishing retailer Nitori Holdings jumped 8.41 per cent and industrial machinery and equipment maker Sumitomo Heavy Industries gained 5.09 per cent, making them the Nikkei’s biggest percentage gainers. REUTERS