Japanese stocks record biggest daily decline this year ‎

Japanese stocks recorded the largest daily decline in percentage terms this year, as caution spread in Asian markets after an unexpected downgrade of the credit rating of the United States, which negatively affected sentiment.

The Nikkei index fell 2.30%, closing at 32,707.69 points, in the largest daily decline since December 20, while the broader Topix index fell 1.54%, to 2,301.26 points.

On Tuesday, Fitch Ratings downgraded the United States’ credit rating to AA+ from AAA, in a move that angered the White House, surprised investors, and comes despite the conclusion to solve the debt ceiling crisis two months ago

MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 2 percent, on track for its worst daily performance since February.

In Japan, shares of Tokyo Electron, a manufacturer of electronic chips, fell 3.12%, and Advantest, a manufacturer of chip testing equipment, fell 4.48%.

Nomura Holdings shares fell 8 percent, the biggest daily decline since March 2021, despite the largest Japanese brokerage firm recording a jump in first-quarter net profit.

This decline caused the brokerage sector index to decline by about 5%, to be the worst performer among the sub-indices on the Tokyo Stock Exchange.

Toyota Motor bucked the market trend and rose 2% after the company announced that it nearly doubled its operating profit in the first quarter of the year.