Nikkei Ends Profit Series Due to Price Losses Tech Companies

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The Tokyo stock exchange closed lower on Tuesday, ceasing a three-day recovery rally. Japanese technology companies, in particular, were under pressure, following the price losses of US peers.

 

Investors fear that the higher interest rates will erode the future profits of the fast-growing tech companies. They also looked forward to the earnings season, which will kick off this week in the United States with the results of the major American banks.

The leading Nikkei in Tokyo eventually closed 0.9 percent down at 28,230.61 points. Tech investor SoftBank, a heavyweight in the index, fell more than 2 percent. Robot manufacturer Fanuc and medical device maker Terumo lost more than 1 percent.

Aviation stocks and retail companies, which previously benefited from optimism about the reopening of the economy, were also sold. Eneos climbed more than 1 percent. Japan’s largest oil refinery has acquired solar and wind energy producer Japan Renewable Energy for around 1.6 billion euros.

In Hong Kong, the Hang Seng index lost 1.3 percent in the meantime. Shares of China Evergrande New Energy Vehicle rose 6 percent in Hong Kong after the company pledged to produce electric vehicles next year.

The company is part of the ailing Chinese real estate group Evergrande, seeing another payment term for bonds expire on Monday. In recent weeks, the company has already missed three interest payments on loans. As a result, trading in Evergrande shares is still on hold.

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