However, market losses capped due to yen depreciation to fresh 34-year low against greenback, raising the prospect of higher earnings for Japanese exporters when repatriating overseas profits.
The 225-issue Nikkei Stock Average index dropped 290.75 points, or 0.74%, to finish at 39,232.80. The broader Topix index of all First Section issues on the Tokyo Stock Exchange retreated 6.44 points, 0.23%, to 2,753.20.
Total 17 of 33 TSE sectors declined, with Pharmaceutical, Air Transportation, Information & Communication, Other Financial Business, Electric Appliances, and Real Estate issues being notable losers, while Electric Power & Gas, Marine Transportation, Nonferrous Metals, and Oil & Coal Products issues were notable gainers.
Shares in Japanese banks and brokerages slid following lacklustre earnings reports from the likes of JPMorgan Chase and Wells Fargo. Tech-related stocks declined on tracking their US peers lower. Chip-making equipment giant Tokyo Electron dropped 1.3%.Chip-testing machinery maker Advantest dropped 2.2%.
ECONOMIC NEWS: Japan Core Machine Orders Surge 7.7% In February-The value of core machine orders in Japan jumped by a seasonally adjusted 7.7% on month in February, the Cabinet Office said on Monday - coming in at 886.6 billion yen. On a yearly basis, core machine orders slipped 1.8% - but that also beat forecasts for a decline of 5.0% after slumping 10.9% in the previous month. Government orders surged 12.1% on month and 58.6% on year to 527.0 billion yen, while orders from overseas rose 0.7% on month and 8.6% on year to 1,238.4 billion yen. For the first quarter of 2024, core machine orders are seen higher by 4.9% on quarter and down 0.1% on year at 2,637.4 billion yen. The total value of machinery orders received by 280 manufacturers operating in Japan increased 2.1% on month and 8.8% on year in February, at 2,803.4 billion yen.
CURRENCY NEWS: Japanese yen notched a fresh 34-year low in the upper 153 level per greenback on Monday amid receding expectations that the U.S. Federal Reserve would cut interest rates soon following last week's stronger-than-expected inflation data. At 5 p.m., the yen quoted at 153.71 per US dollar compared to 153.24 in Tokyo at 5 p.m. on last Friday.
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