Edward Marchesi The Japanese market resumed trading after last week's national holiday. Investors, already cautious about global trends, are closely watching the Tokyo opening, where international news and commodity movements have an immediate impact. In this context, the performance of semiconductor stocks and expectations for bank earnings are intertwined with the geopolitical tensions affecting oil prices.
The Nikkei falls 0,78% after the national holiday
At the start of the week, the benchmark Nikkei index fell 0,78% to 68.492,11 . This loss represents a 538-point decline, marking the first decline since the holiday break. The decline was fueled primarily by selling semiconductor stocks on the Nasdaq, where traders reacted to weaker-than-expected sales data.
Meanwhile, market participants are awaiting the quarterly results of major Japanese banks, the impact of which could further shape prices.
Pressure on semiconductor stocks
The semiconductor sector has been in the spotlight in recent months, with significant volatility linked to global chip demand. Recent price declines have prompted investors to reduce positions in key stocks, dragging the broader Japanese market down as well.
This trend was accentuated by news from the United States, where the Nasdaq showed a downward trend, causing a domino effect on the Nikkei index . Technical analysis suggests that until a sign of stability emerges in this sector, the negative pressure could continue.
Oil prices push energy markets higher
Meanwhile, Brent crude surpassed the $105 a barrel mark , driven by rising tensions in the Middle East . Rising oil prices not only impact production costs but also the profit margins of Tokyo-listed energy companies. Market participants have therefore had to balance concerns about the semiconductor sector with the opportunities offered by energy companies, creating a climate of widespread uncertainty.
The value of the yen against the dollar and the euro
On the exchange rate front, the yen held steady against the dollar , trading at 158,40 per US dollar. However, the Japanese currency strengthened against the euro, reaching 176,80 . This divergence reflects the different risk dynamics perceived by investors: while the dollar has been pressured by rising oil prices, the euro has been affected by factors within the continent. The yen's stability against the dollar could support Japanese exporters, but its appreciation against the euro could reduce the competitiveness of products destined for the European market.
Next week will be crucial to see whether the current pressures will ease following the banking results or whether new geopolitical developments will continue to influence international markets.