Nikkei closes at 8-week low

Japan’s Nikkei index fell by about 2 percent on Tuesday, closing at its lowest level in eight weeks, after technology stocks tracked the decline witnessed on Wall Street on Monday.

According to Reuters, the Nikkei fell 1.94% to 38,471.20 points, its lowest closing level since February 21. The index fell by about 2.3% during the session.

The broader Topix index also fell 2.04% to 2,697.11 points.

“Japanese stocks fell, tracking US stocks,” said Shotaro Yasuda, a market analyst at the Tokai Tokyo Market Research Institute.

US stocks closed sharply lower after a jump in Treasury bond yields amid fears of escalating geopolitical tensions between Iran and Israel.

“The weakness of the yen did not succeed in raising appetite for local stocks because the yen maintained its momentum against other currencies,” Yasuda said. “It boils down to the fact that the dollar was strong against other currencies.”

The dollar rose to its highest level in 5 months against major currencies on Tuesday after US retail sales data came in higher than expected. The Japanese yen broke through the level of 154 to the dollar, its weakest level in 34 years.

Regarding stock performance, Tokyo Electron stock, a manufacturer of chip manufacturing equipment, fell 4.15 percent, causing the largest loss for the Nikkei index, followed by Advantest stock, which manufactures chip testing equipment, which lost 3.76 percent.

Of the 225 stocks on the Nikkei index, 33 stocks rose and 191 declined, while one stock remained stable.