Nikkei Dips Below 38,000 Mark as Cautious Investors Await Earnings

On Monday, Japanese equities finished lower due to investor caution ahead of upcoming earnings reports. The Nikkei index declined 0.13% to end at 38,179.46 points, dipping below the 38,000 mark for the first time since May 2 during intraday trade. The broader Topix index also decreased 0.15% to 2,724.08 points. Analysts suggested that many domestic organizations will release less optimistic financial projections, causing investors to hold back purchases. Real estate shares experienced the most significant decrease, with Mitsui Fudosan and Mitsubishi Estate plummeting 5.39% and 4.11%, respectively. Earlier in the day, the Bank of Japan reduced the quantity of Japanese government bonds it purchased in a routine transaction, resulting in a rise in Japanese government bond yields. Experts have interpreted this action as a sign that the central bank is moving closer to normalizing its policies, which has raised expectations for additional interest rate increases. In contrast, Olympus gained 9.65% following the announcement of a substantial increase in its annual operating profits and the declaration of a share buyback plan, while Honda Motor and KDDI both rose by 1.12% and 3.69%, respectively, after they revealed plans to repurchase their shares. Of the 225 listed companies on the Nikkei index, 87 shares increased in price, 136 declined, and two remained unchanged. The exchange rate was 155.76 Japanese yen per US dollar as of the report’s closing. (Reuters)