Nikkei Finishes Lower after Temporary Gains

Tokyo, Feb. 2 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average closed lower on Monday after erasing early gains, dragged down by losses in semiconductor-related stocks. The index of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section closed down 667.67 points, or 1.25 pct, from Friday to 52,655.18. The broader TOPIX index fell 30.19 points, or 0.85 pct, to 3,536.13. The Nikkei average jumped over 900 points in the morning, supported by the yen’s weakening against the dollar and weekend media reports indicating that Japan’s ruling parties are expected to win the upcoming general election. “More and more media reports suggest the ruling Liberal Democratic Party’s lead, fueling hopes for a stable government under Prime Minister Sanae Takaichi and providing a boost for the stock market,” said an official of a major brokerage firm. In the afternoon, however, the Nikkei turned into negative territory, weighed down by a pause in the yen’s depreciation and slumps in gold and other commodity markets, market sources said. Stock selling was also attributed to U.S. President Donald Trump’s appointment late last week of Kevin Warsh as the next chair of the Federal Reserve. The former Fed official is viewed as relatively cautious about monetary easing. END [Copyright The Jiji Press, Ltd.]