Semiconductors decline in Tokyo

The Tokyo equities markets were lower on Friday, with the Nikkei 225 down 0.4 percent to 17,310.44 and the Topix index 0.1 percent lower top 1,714.21. The exception was the Mothers index of small and mid-cap stocks, which added 5.9 percent to 1,247.00 after a 4 percent gain on Thursday.

The semiconductors sector was lower, with Tokyo Electron dropping 2.5 percent to ¥8,940. Advantest fell 3.5 percent to ¥6,290. They were affected by quarterly reports from US companies in the sector.

Banks were also lower on the session, with the sector as a whole lower by 1.1 percent in the wake of Thursdays decision by the Bank of Japan to hold interest rates at 0.25 percent. The banks could have benefited if rates had been increased, with the possibility that their loan margins might have gone up. Mizuho Financial was 0.7 percent lower to ¥890,000, while Mitsubishi UFJ dropped 1.3 percent to ¥1.51 million.

Consumer finance companies, on the other hand, saw gains, with Aiful up 4.4 percent to ¥4,020. The sector was not looking forward to an interest rate hike, which would have increased their funding costs.

The real estate sector also saw gains, with a 2.3 percent advance for the whole sector. Mitsui Fudosan added 1.7 percent to ¥3,060, while Sumitomo Realty & Development was 4.1 percent higher to ¥4,080.

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