Japan’s stocks recorded the biggest daily decline this year

Japanese stocks posted their largest daily decline in percentage terms this year, as caution spread in Asian markets after an unexpected downgrade of the credit rating of the United States negatively affected sentiment.

The Nikkei index fell 2.30 percent to close at 32,707.69 points, the largest daily decline since December 20, while the broader Topix index fell 1.54 percent to 2,301.26 points.

On Tuesday, Fitch Ratings downgraded the United States’ credit rating to AA+ from AAA, a move that angered the White House, surprised investors and comes despite a resolution to the debt ceiling crisis two months ago. .

MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 2 percent, on track for its worst daily performance since February.

In Japan, chip maker Tokyo Electron fell 3.12 percent, and chip testing equipment maker Advantest fell 4.48 percent.

Nomura Holdings fell 8%, its biggest daily drop since March 2021, despite Japan’s largest stockbroker posting a jump in first-quarter net profit.

This decline caused the brokerage sector index to decline by about five percent, to be the worst performer among the sub-indices on the Tokyo Stock Exchange.

Bucking the market trend, Toyota Motor Corp rose 2 percent after the company reported that it nearly doubled its first-quarter operating profit.