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On Monday, Japan’s Nikkei average edged lower but maintained proximity to record highs, influenced by declines in chip-related stocks following losses in their US counterparts on Friday. The Nikkei index slipped by 0.04 percent, concluding the day at 38,470.38 points, after reaching 38,865.06 points on Friday. Notably, it remained a mere 93 points away from the all-time high established on the final trading day of 1989 during Japan’s bubble economy zenith.
Topix Index Shows Resilience with Modest Rise
In contrast, the broader Topix index demonstrated resilience, posting a 0.57 percent increase amidst mixed market sentiments.
Chip Sector Weighs on Nikkei’s Performance
Chip giants Advantest and Tokyo Electron bore the brunt of the Nikkei index’s decline, shedding 60 and 55 points, respectively. This translated to declines of 3.2 percent and 1.6 percent, reflecting broader weakness in the chip sector.
Nintendo Leads Percentage Losses
Nintendo emerged as the biggest percentage loser, witnessing a significant decline of 5.8 percent during Monday’s trading session.
SoftBank Bucks Trend with Promising Chip Project News
In a notable divergence from the prevailing trend, SoftBank, renowned for its focus on investing in artificial intelligence, saw its stock rise by 47 points, marking a 2.8 percent increase. This uptick followed a media report indicating that founder Masayoshi Son is exploring avenues to raise up to $100 billion for a chip project, injecting optimism into SoftBank’s prospects.
Financial Sector Flourishes Amid Rising Bond Yields
On a positive note, shares of banks and other financial institutions experienced gains, buoyed by rising bond yields which bolstered their profitability. The banking sector emerged as the top performer among the 33 industrial groups on the Tokyo Stock Exchange, surging by 2.9 percent during Monday’s trading session. This trend underscores the importance of bond market dynamics in shaping investor sentiment and market movements.
