Japanese stocks fall, selling mainly on high-tech stocks due to performance concerns – US meta stocks fall – Bloomberg

The Tokyo stock market fell on the 25th.US announced financial results Meta Platforms’ stock price fell sharply in after-hours trading, leading to sell-offs centered on tech stocks. There are also concerns about rising long-term interest rates in the US and foreign exchange intervention.

Tokyo Electron contributed the most to the decline in TOPIX, dropping 3.6%. Of the 2,146 constituent stocks in the index, 590 stocks rose and 1,330 stocks fell.

Tech stocks are the biggest drag on TOPIX. On the 24th, Facebook’s parent company Meta announced a sales forecast that was lower than market expectations, and raised its capital investment target for this year due to initiatives such as artificial intelligence (AI). The company’s stock price plunged 19% in after-hours trading.

Views of market participants

Takashi Ito Senior Strategist at Nomura Securities

• Selling will likely take precedence in the morning as Nikkei average futures fell after hours.
• The weak yen makes it difficult to buy electricity and land transportation.
• However, since the end of last week, the tensions surrounding the situation in the Middle East have subsided and the price of crude oil has subsided, and investor sentiment has improved.Due to the weaker yen, we expect the decline to slow down after starting low.

insight

• 28 out of 33 industries on the TSE declined, with machinery leading the decline and petroleum and coal products leading the rise.
• MSCI Asia Pacific Index falls 0.4%
• TOPIX is up 14% year-to-date, MSCI Asia Pacific Index is up 1.9%
• TOPIX’s 12-month forecast PER is 15.6 times

background

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