FX168 Financial News Agency (Asia-Pacific) reports that on Thursday (November 21), the Tokyo stock market closed lower as usa chip giant nvidia's earnings report failed to meet investor expectations, while the appreciation of the yen put pressure on export companies.

By the close, the nikkei index composed of 225 stocks fell by 326.17 points, or 0.85%, closing at 38,026.17 points. The topix index declined by 15.48 points, or 0.57%, closing at 2,682.81 points.

In the main board market, mining, precision instruments, and retail stocks led the decline. #japan market#

The nikkei index dropped more than 400 points during the session, mainly influenced by nvidia's stock price decline in after-hours trading following the earnings report for August to October, which put pressure on the semiconductor leader.

The technology-dominated nasdaq index closed lower on Wednesday, temporarily retreating from the previous day's rebound, as investors expressed concerns over the escalating situation between russia and ukraine and poor earnings from target.

As a star company in the ai field, nvidia fell by 0.76% during regular trading hours and then continued to decline in after-hours trading, as its fourth-quarter revenue forecast failed to meet some investors' high expectations.

Nvidia's prospects are crucial for the nikkei index, as chip-related stocks have a significant impact on the index, such as the chip testing equipment manufacturer advantest.

On Thursday, advantest fell by 1.64%, and chip manufacturing equipment manufacturer tokyo electron ltd. unsponsored adr fell by 0.41%. Tech startup investor softbank group also declined by 1.1%.

Shingo Ide, chief equity strategist at NLI Research Institute, stated, "Chip-related stocks are falling along with the usa stock market, but the overall market lacks clues to drive market volatility following nvidia's earnings report."

Tomoichiro Kubota, senior market analyst at Matsui Securities Co., said, "Although nvidia's earnings report is not bad, the decline in gross margin has raised concerns among some investors that its profit growth may have peaked."

He also pointed out, "Considering that nvidia's stock price has almost tripled so far this year, this decline in stock price is more likely driven by profit-taking."

Due to market speculation on the increase in the policy interest rate by the Bank of japan, bond yields rose, pushing up financial stocks. Mizuho financial group increased by 1.32%, and Resona Holdings increased by 1.84%. The bank sector index rose by 0.18%, making it one of three sub-indices that rose among the 33 industry groups on the Tokyo exchange.

Due to the escalation of the Russia-Ukraine war situation, the yen has becomeIts price has soared to a historic high, closely related to market expectations of interest rate cuts by the Federal Reserve.sought after, and the exchange rate of the dollar against the yen fell to the 154 yen range in the tokyo market, further depressing market sentiment.

Brokerages indicated that, in the absence of other trading cues, the export-oriented autos and industrial machinery sectors were impacted by the decline in repatriated profits due to the appreciation of the yen, which further dragged down market performance.