Japanese Stocks Take a Hit as SoftBank Follows Oracle's Decline

Japanese Market Sees Decline

The Japanese stock market, led by the Nikkei share average, experienced a slight decline on Thursday. This reversal came after initial gains, with the Nikkei finishing 0.1% lower at 50,554.10. The Topix also fell by 0.17% to 3,383.12.

SoftBank Group Leads the Decline

The main factor behind this decline was SoftBank Group, which dropped by 5.17%. This significant fall was largely due to Oracle's disappointing sales and profit forecast. Oracle's shares declined by more than 11% in extended trading, affecting SoftBank's performance since they are partners in the Stargate project, an ambitious artificial intelligence data center development in the U.S.

Market Analyst Insights

According to Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory, the initial gains were erased by SoftBank Group's decline. Yasuda noted that concerns about the data center project's future, given Oracle's earnings, contributed to the market's downturn.

Global Market Trends

Despite the decline, overnight Wall Street ended on a positive note after the Federal Reserve cut interest rates by 25 basis points, as expected. This move led investors to bet on further easing, despite the central bank signaling a pause in rate cuts for now.

Performance of Other Stocks

Other technology stocks in Japan also experienced a decline, with Tokyo Electron slipping 0.75%, Shin-Etsu Chemical declining 1.83%, and Fanuc losing 1.48%. On the other hand, bank shares rose, with Mizuho Financial Group and Sumitomo Mitsui Financial Group climbing 0.53% and 0.62%, respectively.

Not all stocks followed the downward trend, however. Advantest, a chip-testing equipment maker, jumped 4.49%, and Toppan Holdings, a printing firm, rose 5.3% to become the Nikkei's top percentage gainer.

Market Overview

Out of over 1,600 shares trading on the Tokyo Stock Exchange's prime market, 25% rose, 70% fell, and 4% remained unchanged. The value share index was flat, while the growth share index slipped 0.32%.

This fluctuation reflects the complex and interconnected nature of the global stock market, where the performance of one major player can significantly impact others, even across different sectors and geographical locations.