The stock exchange in Japan closed with a loss on Wednesday. Investors took some profit after the recent rally that pushed the stock market to its highest level in more than thirty years.
Especially the companies in the technology and chip sector were sold, following the exchange rate losses among American peers. The minutes of the last US Federal Reserve interest rate meeting were also looked forward to, released later today.
The Nikkei in Tokyo finished 0.6 percent in the minus at 30,292.19 points. Earlier this week, Japan’s main index returned above 30,000 points for the first time since August 1990. The chip and tech companies TDK, Yaskawa Electric and Tokyo Electron were among the strongest fallers with minuses of more than 3 percent. Bridgestone fell 3.8 percent.
The Japanese tire manufacturer suffered a year loss for the first time in 69 years due to the corona crisis. In contrast, the aviation sector and railway companies were in the plus, thanks to the start of the Japan vaccination program.
Better than expected macroeconomic data also provided some support for equity trading. Japanese exports rose 6.4 percent in January compared to the same period a year earlier. Especially exports to China, Japan’s largest trading partner, increased sharply. In addition, Japanese machine orders showed an unexpected increase of 5.2 percent in December. Economists had expected a decrease of more than 6 percent.
In Hong Kong, the Hang Seng index continued to advance after the long holiday period around the Chinese New Year and in the meantime recorded 0.9 percent in the plus. The Hong Kong stock exchange is thus heading for its seventh consecutive profit turn.
The financial markets in Shanghai will reopen on Thursday after the holiday week in China. The All Ordinaries in Sydney closed 0.5 percent lower. British-Australian mining group Rio Tinto rose 3.6 percent on strong results.