Market Commentary - Foreign Markets
Japan Nikkei falls 0.31% As on : 21-May-24  13:05

Japan share market finished session slightly lower after surrendering early gains on Tuesday, 21 May 2024, as investors locked in recent gains on tracking mixed cues from Wall Street overnight, with shares of real estate issues leading losses amid rising Japanese long-term interest rates.

At closing bell, the 225-issue Nikkei Stock Average index was down 122.75 points, or 0.31%, to 38,946.93. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 8.32 points, 0.3%, to 2,759.72.

Shares of real estate issues fell as a continued rise in Japanese government bond yields prompted concerns over higher borrowing costs.

Tech related stocks also declined on caution ahead of U.S. chip giant Nvidia Corp. quarterly earnings releases on Wednesday. Industrial robot-maker Fanuc lost 1.9%. Toyota slipped 0.3% and Sony Group dropped 1.4%.

Insurers were strong, with MS&AD Insurance Group surging 13.8% after the company said on Monday its group net profit is forecast to rise 65% and that it would buy back up to 8.2% of its shares. Tokio Marine Holdings rose 2.34% after announcing it would sell down cross-shareholdings to zero by the end of fiscal 2029/30.

Chip-related shares rose, with Advantest and Tokyo Electron rising 1.45% and 0.8%, respectively.

CURRENCY NEWS: Japanese yen moved in the mid-156 zone against greenback amid fears that interest rate differential between Japan and the United States to remain wide after some Federal Reserve officials expressed caution about cutting interest rates. The dollar fetched 156.37 yen in Asian trade, against 156.29 yen on Monday in New York.

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