Updated January 4th, 2024 at 14:28 IST

Japan’s Nikkei takes a hit as stock respond to earthquake, airline collision in Japan

The broader Topix is down 0.34 per cent at 2,358.28.

Reported by: Business Desk
Nikkei | Image:Shutterstock
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Nikkei in focus: Japan's Nikkei saw a 2 per cent decline on the first trading day of 2024, with stocks reacting to the recent aircraft collision and powerful earthquake in western Japan. 

Sectors like airlines, construction, and energy are particularly affected. The Nikkei, fell 1.59 per cent at 32,932.16, saw chip-related stocks as the most notable losers, while airline and construction stocks bear the brunt of the quake and collision impact.

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The broader Topix dropped 0.34 per cent at 2,358.28. 

"The Nikkei fell due to a sell-off of Japan, as investors sentiment was weighed by the shock of the earthquake," said Naoki Fujiwara, senior fund manager at Shinkin Asset Management.

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Chip-related shares, including Advantest and Tokyo Electron, showed a sharp drop, attributed partly to increased US Treasury yields. Construction firms like Kajima, Taisei, and Obayashi, however, experienced gains of over 4 per cent. 

Following Tuesday's collision involving Japan Airlines (JAL) and a Coast Guard aircraft at Tokyo's Haneda airport, JAL shares faced a surge in early sell orders, resulting in a 0.25 per cent decline. 

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The earthquake in Ishikawa prefecture, which caused 65 confirmed deaths, marks Japan's deadliest since at least 2016.

(With Reuters Inputs)

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Published January 4th, 2024 at 07:30 IST