Tokyo stocks plunged Friday to extend their losing streak to a fifth day, with the benchmark Nikkei average slipping through the 23,000 threshold for the first time in some two months.
The 225-issue Nikkei average of the Tokyo Stock Exchange plummeted 354.81 points, or 1.52%, to close at 22,977.13, the lowest finish since Aug. 28. On Thursday, it fell 86.57 points.
The Topix index of all TSE first section issues closed down 31.60 points, or 1.96%, at 1,579.33, after giving up 1.62 points the previous day.
The market continued to slide in the morning, although all three major U.S. stock indexes, including the Dow Jones Industrial Average, rebounded Thursday.
Investors shifted to the sell side in view of a drop in Dow futures in off-hours trading that came on the heels of Apple Inc.’s iPhone sales estimate failing to beat a market consensus in the technology giant’s earnings announcement made after the closing of the New York Stock Exchange.
Tokyo stocks showed some resilience from late morning until the early afternoon, supported by the Bank of Japan’s purchases of exchange-traded funds, brokers said.
After the bout of buying ran its course, however, both the Nikkei and Topix indexes fell deeper into negative terrain amid growing uncertainties over the outcome of the U.S. presidential election scheduled for Tuesday.
“Investors in the afternoon stepped up position-squaring selling ahead of the election,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co.
Meanwhile, Maki Sawada, vice president of Nomura Securities Co.’s Investment Research & Investor Services Department, said some stocks attracted buying after their issuers, such as industrial robot maker Fanuc, reported brisk earnings.
On the first section, decliners overwhelmed gainers 1,897 to 244 with 39 issues unchanged. Volume rose to 1.313 billion shares from Thursday’s 1.012 billion shares.
Technology firm Kyocera and electronics giant NEC dived 9.95% and 4.55%, respectively, due to worse-than-expected operating profits for July-September.
Murata Manufacturing and Taiyo Yuden, iPhone parts suppliers, were beaten by Apple’s fall in off-hours futures trading.
Among other major losers were drugmaker Takeda and chipmaking gear manufacturer Tokyo Electron.
On the other hand, Fanuc was lifted 3.21% by the firm’s upward revision to its operating profit estimate for the current business year ending next March.
Hardware store operator Shimachu and publisher Kadokawa also attracted active buying.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average declined 440 points to end at 22,880.
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