On Friday, Japan’s Nikkei share average experienced a slight decline, influenced by a decrease in technology shares mirroring their U.S. counterparts. Traders remained cautious ahead of the upcoming Bank of Japan (BOJ) meeting.
The Nikkei was down 0.14% at 38,751.54 during the midday break, with the benchmark index on track for its largest weekly drop since early December. The decline was primarily attributed to profit-taking in tech-related shares, which had previously lifted the index above 40,000 points earlier in the month. This trend followed a decrease in the U.S. semiconductor index, which fell by 1.8%.
Shares of chip-testing equipment maker Advantest and chip-making equipment giant Tokyo Electron were among the decliners, down 1.7% and 3.3%, respectively. Advantest was one of the worst performers for the week, experiencing a loss of more than 7%.
Investors were closely monitoring the impact of the U.S. stock market downturn and the results of Japan’s spring wage negotiations, which were expected to influence the BOJ’s decision at its upcoming meeting on March 18-19.
There were speculations that the BOJ might consider ending its negative interest rate policy, potentially impacting the Nikkei index. However, Japan’s Finance Minister Shunichi Suzuki stated that the nation’s economy is no longer experiencing deflation, highlighting a strong trend of wage increases.
The losses in the Nikkei were partially offset by strength in the energy sector, with energy explorers and oil and coal production firms experiencing gains.
Meanwhile, shares of heavyweights such as SoftBank Group Corp and Uniqlo parent firm Fast Retailing saw slight increases.
The broader Topix index, on the other hand, was up 0.58% at 2676.95, providing some resilience amidst the mixed performance of individual sectors.