Japan's Nikkei index continued to fall on Tuesday, March 12, as investors adjusted ahead of U.S. inflation data and counted on stronger expectations that the Bank of Japan could make a historic shift in monetary policy next week.
The Nikkei index closed down 0.1% at 38,797.51, recouping some of the broad losses it suffered in the morning session but failing to close in positive territory.
The index continued to decline for the second day in a row, after closing down 2.2% yesterday, Monday.
Technology stocks
Technology stocks, which have contributed significantly to the Nikkei's 16 percent gain so far this year, tracked their U.S. peers lower as investors awaited U.S. consumer price data due later on Tuesday.
Shares of chipmaking equipment giant Tokyo Electron fell 1.7%, while shares of SoftBank Group, which invests in startups focused on artificial intelligence, fell 0.7%.
Recovery of leading stocks
But the Nikkei's losses were limited as leading stocks such as Fast Retailing, owner of clothing chain Uniqlo, and chip testing equipment maker Advantest, which rose 1.4% and 0.9% respectively, recovered.
Exporter shares also rose somewhat after the yen weakened in Asian afternoon trade due to less optimistic comments from the Bank of Japan chief on the economy, although automaker Toyota Motor Corp continued to fall, falling 0.7%.
Japanese Yen and the Banking Sector
The yen has recently risen amid expectations that the Bank of Japan may end negative interest rates at its monetary policy meeting scheduled for March 18-19.
Banking and insurance stocks, which have posted some of the biggest gains so far this year, fell 1.9% and 1.6% respectively, amid investor adjustments.
