Tokyo stocks down after falls on Wall Street
Tokyo | AFP
Tokyo stocks ended lower on Wednesday, tracking falls on Wall Street where rising bond yields renewed inflation concerns with financial shares hit hard.
The benchmark Nikkei 225 index lost 0.86 percent, or 253.90 points, to 29,178.80, while the broader Topix index slipped 1.21 percent, or 23.86 points, to 1,954.00.
Shortly before the opening bell, the Japanese government said industrial production dropped a larger-than-expected 2.1 percent from the previous month, which weighed on the market, said SMBC Nikko Securities.
But investors also avoided taking aggressive positions as US President Joe Biden prepared to make an address to unveil a major infrastructure spending programme, the brokerage said.
“Many took a wait-and-see stance and did not actively sell down,” it said.
Overnight falls of the Dow also depressed the mood in Tokyo from the start.
Bargain hunters continued to provide support, although the market saw more sellers than buyers.
The dollar firmed to 110.77 yen in Tokyo, against 110.38 yen in New York late Tuesday after the greenback broke through the 110 yen barrier for the first time in a year.
Among major shares, Mitsubishi UFJ Financial lost 3.87 percent to 591.7 yen after it warned it could face a $300 million loss in its dealings with a US client.
The announcement came after Japan’s Nomura and Switzerland’s Credit Suisse warned they faced significant losses after reports of their exposure to a US fund that sold billions in stocks last week.
Renesas Electronics trimmed earlier losses and ended down 0.17 percent at 1,200 yen after it said it could take three to four months to fully recover from a fire at one of its plants that threatens to worsen a global semiconductor shortage plaguing automakers.
Industrial robot maker Fanuc dropped 2.39 percent to 26,185 yen.
Nintendo fell 2.74 percent to 61,810 yen and Sony added 0.87 percent to 11,595 yen. Toyota rose 3.04 percent to 8,616 yen.
© Agence France-Presse