Tokyo, April 18, 2024 (AFP)
Tokyo stocks opened lower on Thursday after US semiconductor shares dropped overnight while investors kept their eyes on the Middle East.
The benchmark Nikkei 225 index dropped 0.61 percent, or 230.45 points, to 37,731.35 in early trade, while the broader Topix index lost 0.23 percent, or 6.17 points, to 2,656.98.
US and Japanese tech shares have come under pressure after Dutch tech giant ASML issued a disappointing earnings report.
"The Tokyo market was expected to trend downward in early trade after US high-tech shares dropped overnight," brokerage Monex said.
Players were seen shying away from making major moves ahead of an earnings report from global chip giant Taiwan Semiconductor Manufacturing Company ( TSMC ) to be released in the afternoon.
Global investors are monitoring the Middle East which has not shown immediate signs of escalating tensions between Iran and Israel.
Dimming prospects for early US rate cuts also weighed on the market.
"Investors have been quick to attribute recent market fluctuations to geopolitical tensions," Stephen Innes of SPI Asset Management said.
"However, it's more probable that equities are perhaps just now adjusting to the recalibration of the Federal Reserve's less dovish monetary policy trajectory and broader interest rate dynamics," he said.
The dollar was 154.35 yen, little changed from 154.36 yen seen in New York overnight.
Japanese currency officials have repeatedly suggested that they might intervene in the market to prop up the yen following a recent slide.
Among major shares, semiconductor shares fell. Tokyo Electron was off 1.21 percent to 36,840 yen. Disco was off 0.66 percent to 52,890 yen.
SoftBank Group fell 2.35 percent to 7,812 yen.
Toyota was off 0.31 percent to 3,586 yen.
But Sony Group added 0.87 percent to 12,775 yen.

Sumber : AFP