The Nikkei index closed down 0.85 percent to 38,617.10 points, while the broader Topix index fell 0.81 percent today, Wednesday, to 2,737.36 points.
“The whole world is awaiting Nvidia’s results,” said Shuji Hosui of Daiwa Securities. “The results will affect global stocks, specifically American stocks, which will affect Japanese stocks.”
Nvidia, the third-largest company on Wall Street by market value, will announce its results after the closing bell on Wednesday, in what is likely to be an important catalyst for the market and will test whether the surge in stocks related to artificial intelligence can be sustainable.
Shares of major electronic chip manufacturing companies declined before the earnings report was issued, and these companies contributed to the Nikkei hitting a record high during the March 22 session at 41,087.75 points.
Tokyo Electron shares fell 1.2 percent, while Advantest shares fell 0.8 percent, and Advantest counts Nvidia among its clients.
The Nikkei index has hovered below the level of 40,000 points since the beginning of April, and analysts say that this is partly due to sentiment being affected by expectations that local companies will achieve modest profits.
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