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Tokyo stocks end lower on geopolitical risks, Nvidia caution
MAINICHI   | Nopember 20, 2024
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This May 7, 2020 file photo shows the Tokyo Stock Exchange. (Mainichi)
TOKYO (Kyodo) -- Tokyo stocks ended lower Wednesday, weighed down by concern over escalating Russia-Ukraine tensions and caution ahead of the release of U.S. chip giant Nvidia Corp.'s earnings report.
The 225-issue Nikkei Stock Average ended down 62.09 points, or 0.16 percent, from Tuesday at 38,352.34. The broader Topix index finished 11.74 points, or 0.43 percent, lower at 2,698.29.
On the top-tier Prime Market, decliners were led by insurance, land transportation and mining shares.
The U.S. dollar rose to the upper 155 yen range in Tokyo as investors sold the yen to lock in profits after the Japanese currency, seen as a safe-haven asset, was sought following reports that Ukraine had fired U.S.-supplied long-range missiles into Russia for the first time, dealers said.
At 5 p.m., the dollar fetched 155.65-67 yen compared with 154.64-74 yen in New York and 154.53-54 yen in Tokyo at 5 p.m. Tuesday.
The euro was quoted at $1.0578-0579 and 164.65-69 yen against $1.0591-0601 and 163.85-95 yen in New York, and $1.0577-0578 and 163.45-49 yen in Tokyo late Tuesday afternoon.
The yield on the benchmark 10-year Japanese government bond ended at 1.065 percent, unchanged from Tuesday's close.
Stocks were mostly under pressure throughout the day, as concerns over geopolitical risks and their impact on the global economy were fueled by Ukraine's moves and Russian President Vladimir Putin easing the threshold for nuclear weapon use.
Investors also refrained from buying due to "a wait-and-see mood that prevailed ahead of Nvidia's earnings report," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., with the results closely watched to gauge demand for semiconductors and artificial intelligence.
While export-oriented auto issues, as well as shipping issues, were unloaded due to geopolitical concerns, Ichikawa said the market found some support from buying in individual stocks, such as Seven & i Holdings, that had fresh trading cues.
The operator of the Seven-Eleven convenience store chain was among the day's biggest gainers following reports its founding family intends to privatize it by the end of the fiscal year to fend off a takeover bid by Canadian rival Alimentation Couche-Tard Inc.
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