The Tokyo Stock Exchange fell on Thursday October 31 in the middle of Asian trading, weighed down by a plunge in securities linked to semiconductors and the rebound in oil, while uncertainty over the outcome of the American presidential election fueled the investors' wait-and-see attitude. In Tokyo around 02:00 GMT, the flagship Nikkei index fell 0.44% to 39,102.81 points, and the broader Topix index fell 0.48% to 2,690.83 points.
Semiconductors weigh in Tokyo
The market was awaiting a decision from the Bank of Japan: traders anticipate a monetary status quo, while currency volatility and political uncertainty after the national elections in the country “limit the room for maneuver” of the institution, observed analysts from broker Tokai Tokyo. The Japanese currency lost ground to 153.49 yen per dollar.
The stock market, on the other hand, was pulled down by a sharp drop in securities linked to the semiconductor industry, such as Tokyo Electron (-1.67%), in the wake of the sector's collapse the day before on Wall Street, where the AMD group collapsed by 10%. “The fall in U.S. stocks is likely a burden, but strong demand for artificial intelligence (AI) remains a positive”tempered Tokai Tokyo.
Japanese chip manufacturer Renesas suffered (-3.74%) after revenue forecasts for the fourth quarter of its financial year fell well short of expectations.
Conversely, the manufacturer of equipment for the production of semiconductors Advantest (+7.10%) stood out, having raised its forecasts and announced a massive share buyback.
Industrial conglomerate Hitachi tumbled 8.07% after raising its annual profit and revenue forecasts to a level well below expectations, auguring a difficult outlook.
On the Seoul Stock Exchange, Samsung Electronics fell slightly (-0.34%), after less good growth than expected in quarterly profits despite the AI boom.
Oil confirms its rebound
Oil prices continued their rebound on Thursday in Asian trade, driven by good news on demand from the United States – where stocks are falling against all expectations. But also invigorated by press information according to which OPEC producing countries are considering postponing the increase in their crude supply.
Around 02:00 GMT, the price of a barrel of Brent from the North Sea gained 0.30%, to $72.77, and that of West Texas Intermediate (WTI) gained 0.31%, to $68.82. A safe haven boosted by geopolitical uncertainties as well as by nervousness before the American election, gold rose to a new historic high on Thursday at around $2,790 per ounce.
Chinese stock markets on the alert
The climate remains cautious on the Chinese stock markets, ahead of a manufacturing indicator and awaiting details on Beijing's recovery plans. Press information on a possible government plan for colossal borrowing over the coming years was not enough to reinvigorate the market. Around 02:00 GMT, the Shanghai composite index lost 0.36% to 3,254.53 points, that of Shenzhen lost 0.05% to 1,972.73 points.
In Hong Kong, the Hang Seng index, on the other hand, gained 0.51% to 20,484.71 points. “Asian stock markets fluctuate in a narrow range, with no clear direction” while awaiting the results of large American groups expected at the end of the week, observed analysts at Hang Seng Bank. If the Hong Kong Stock Exchange continues to progress after already three sessions on the rise, “it is because the market anticipates the details of the fiscal stimulus which will be revealed (in Beijing) after the parliamentary assembly”they add.
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