Nikkei index ends below 27K pts, chip stocks limit losses

The Japanese Nikkei index ended trading today, Friday, below the main 27 thousand points level, affected by declines recorded by Wall Street Thursday night, amid fears that the announcement of the Federal Reserve (the US central bank) of a sharp interest rate hike may cause a recession.

But the losses were limited by strong gains in chip-related stocks amid a rise in the Philadelphia Semiconductor Index, along with strong profits for IBM and local chip equipment supplier Disco.

According to “Reuters”, the Nikkei index fell 0.43% to close at 26,890.58 points, near its lowest level recorded during Friday at 26,869.38. Among the 225 stocks on the index, 186 declined and 35 rose, while four remained unchanged

As for the broader TOPIX index, it fell 0.71% to 1881.98 points

During the week, the Nikkei lost 0.74 percent, while TOPIX fell 0.85%.

The interest rate-sensitive real estate sector was the worst performer on the Nikkei on Friday, down 1.67%, followed by the utilities sector, which fell 1.26%.

Moreover, energy sector was the only one that closed on the rise, as it rose 0.03%.

Although the technology sector ended lower, chips-related stocks rose, with Tokyo Electron jumping 4.6%, making it the best performer on the Nikkei index.

Investors are looking forward to Japanese profits next week, as more than 300 companies are scheduled to announce their results, as well as a policy meeting to be held by the Bank of Japan next Friday.