TOKYO – Japan's Nikkei share average tumbled by over 1% in early trading on Tuesday, reaching its lowest point in over a month. The decline was fueled by a confluence of factors, including a strengthening yen and overnight losses on Wall Street.
As of 0022 GMT, the Nikkei had fallen 1.6% to 38,157.15, while the broader Topix index decreased by 0.7%.
The yen's surge to its highest level against the dollar since early December placed pressure on export-oriented stocks. This movement came as markets reopened following a holiday.
Adding to the negative sentiment, the Nasdaq composite experienced a decline of more than 1% on Monday. Major technology stocks were the primary drivers of this downturn, as investors expressed concerns regarding the demand for AI-related technology. Market participants are also awaiting upcoming earnings results from industry giant Nvidia.
In contrast to the overall market trend, trading houses Itochu, Marubeni, Mitsubishi Corp, Mitsui, and Sumitomo Corp saw significant gains. These surges followed Warren Buffett's announcement on Saturday that Berkshire Hathaway plans to increase its stakes in these five companies.
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