Categories
News US Markets

Japanese Benchmark Nikkei Drops On Profit-Taking; Traders Await More Profits

Tokyo shares fell on Monday as profit-taking gained strength, with warning building ahead of more earnings reports from Japan Inc. and key central bank policy decisions this week.

Regardless of helpful cues from Wall Street, Japan’s benchmark Nikkei share average fell 0.6% to 21,538.20 points by the noon break, pulling back from a 2-1/2-month high hit on Thursday.

On Friday, sturdy earnings from Alphabet and Starbucks pushed the S&P 500 and Nasdaq indexes to record highs, with assistance from information showing U.S. economic development slowed less than predicted in Q2.

Revenue taking hit Japanese suppliers of electronic components to China’s Huawei that had been purchased late last week on a renewal of U.S.-China trade discussion. Murata Manufacturing dropped 2.7%, TDK slid 2.4%, and Taiyo Yuden Co plunged 2.3%.

Tokyo Electron shed 1.5% after the chip-manufacturing equipment supplier stated its operating revenue for the April-June quarter slumped 41% year-on-year, a much larger decline than the analyst consensus after the market concludes on Friday.

Jumping the general weakness, Nikkei giant SoftBank Group rose 2.3% after the U.S. Justice Division said T-Mobile won antitrust consent for its $26 billion merger of competing Sprint Corp.

The broader Topix glid 0.5% to 1.564.50.

Japan’s April-June quarter company income season gets into full swing this week.

The Bank of Japan is predicted to keep its huge stimulus program fixed at the end of a two-day meeting on Tuesday, days ahead of a widely anticipated rate of interest reduction by the U.S. Federal Reserve.

Richard Alberty

By Richard Alberty

Richard is one of the state's well-known business journalist having decades of experience in business reporting. He brings that experience in FBI Market News and leads the US Market Column. Richard provides sharp and insightful analysis of the market to readers

Leave a Reply

Your email address will not be published. Required fields are marked *