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      Nikkei Index Declines Ahead of Micron Technology Earnings

      Japan's Nikkei share average experienced a slight decline on Monday, surrendering early gains as traders reacted to weakening Nasdaq futures ahead of the quarterly earnings report from US chipmaker Micron Technology, scheduled for Wednesday. The index had risen as much as 1% earlier in the day but ended the morning session marginally lower, potentially concluding a five-session winning streak. In contrast, the broader Topix index managed a small increase of approximately 0.2%.

      Market analysts indicate that the performance of Japanese equities is closely tied to sentiment in the US semiconductor sector. A senior portfolio manager noted that the US semiconductor index has been trading within a wide range since June 20 and is expected to continue this trend for the next three to four months. This outlook suggests that the Nikkei will likely mirror these movements, leading to a choppy trading environment rather than a clear breakout.

      Additionally, there are concerns regarding the stability of bank shares, which are considered one of the main supports for Japanese stocks. Analysts warn that these shares could face challenges as the Bank of Japan approaches its terminal policy rate. The market's dependence on the upcoming earnings from Micron will be crucial, as investors look for indications of whether the semiconductor sector can drive the Nikkei back toward its recent highs or if the current range-bound pattern will persist.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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