TOKYO: Tokyo shares closed lower on Thursday after the tech-rich US Nasdaq index fell following disappointing results from Microsoft and Google parent company Alphabet.
The benchmark Nikkei 225 index lost 0.32 percent, or 86.60 points, to 27,345.24, while the broader Topix index ended down 0.66 percent, or 12.65 points, at 1,905.56.
Japanese stocks were weighed down by falls on Wall Street, especially drops in US tech shares, according to analysts.
Meanwhile “a wait-and-see attitude is growing ahead of earnings reports” by major Japanese companies, Mizuho Securities said.
Overnight in New York, the Nasdaq closed down two percent and the broad-based S&P 500 dipped 0.7 percent, while the Dow Jones Industrial Average finished flat on hopes for a moderation in US monetary policy.
Microsoft and Alphabet shares both plunged more than seven percent after Microsoft offered a lacklustre forecast, while Alphabet was hurt by a pullback in online advertising.
The dollar traded at 145.23 yen in Asia, down from 146.39 yen in New York on Wednesday.
The yen strengthened after the Bank of Canada hiked its key interest rate by 0.5 percentage points – bolstering the view that the US Federal Reserve could similarly slow the pace of rate hikes, Monex senior market analyst Toshiyuki Kanayama said.
Japan’s Nikkei pares gains in afternoon as China worries weigh
“Traders will keep an eye on the moves of US futures and other trends,” he said.
Automakers were among losers in Tokyo, with Nissan down 1.09 percent to 462.6 yen, while Toyota fell 1.04 percent to 1,999 yen, and Honda lost 1.79 percent to 3,301 yen.
Hitachi slipped 0.60 percent to 6,505 yen and Panasonic lost 0.51 percent to 1,065.5 yen, but SoftBank Group gained 0.93 percent to 6,087 yen.
Comments
Comments are closed for this article.