Japanese tech stocks fall, travel stocks rise before tourism returns

Japanese technology stocks fell Friday, October 7, as Sharp Corp and other concerns about the sector’s future were hurt, after warning signs from abroad from Advanced Micro Devices and Samsung Electronics.

In contrast, travel-related stocks – including airlines, rail operators and supermarkets – rose before borders reopen next week to tourists.

Advanced Micro Devices and Samsung Electronics issued worse-than-expected earnings forecasts, adding to concerns about waning demand for electronic devices and the chips that go into them.

Sharp, which makes displays and sensors, fell 4.24%, the biggest loser among the Nikkei stocks. Shares in Tokyo Electron, a manufacturer of manufacturing equipment, also declined
chips, by 0.79%.

The Nikkei average fell 0.71% after four days of gains.

The index fell below the 27 thousand points barrier when the markets opened, but it gradually recovered to close at 27116.11. It rose by 3.43% during the week.

Trading volumes were limited as investors preferred caution ahead of US non-farm payrolls data due later today. Markets will be closed for a national holiday in Japan on Monday.