TOKYO: Japanese shares fell on Tuesday after a three-session rally, tracking a weaker finish on Wall Street and as fears over higher US interest rates drove a sell-off in big technology stocks.
The Nikkei share average dropped 0.81% to 28,268.11 by 0215 GMT, while the broader Topix lost 0.65% to 1,983.59.
"Wall Street's lower finish has pushed Japanese shares down but I would say today's declines were rather a reaction to a strong rally in the past few sessions," said Hideyuki Suzuki, general manager at investment research for SBI Securities.
Nikkei snaps 8-day losing streak, growth and cyclical shares rebound
"Investors saw rising US interest rates as risk factors because when rates are high, growth shares are sold. That means Japanese technology stocks also decline."
US stocks closed lower on Monday as investors grew nervous ahead of the third-quarter earnings reporting season, while US Treasury yields hit multi-month highs at the end of last week in the wake of a weaker-than-anticipated September employment report. US bond markets were closed on Monday for a holiday.
In Japan, technology heavyweights dragged the Nikkei lower on Tuesday, with start-up investor SoftBank Group falling 2.6%, robot maker Fanuc losing 1.62% and medical equipment maker Terumo slipping 1.65%.
Shares that rose recently on hopes of an economic reopening fell, with retailers and airlines losing 1.61% and 1.62%, respectively.
Yaskawa Electric Corp, which was among the first to report results every earnings season, extended losses despite an upward revision to its profit outlook on Friday, losing 3.06%.
Oil explorer Inpex edged up 0.41% amid a spike in oil prices.
Eneos Holdings advanced 1.51% after Japan's biggest refiner made a $1.8 billion acquisition of solar power plant operator Japan Renewable Energy to expand its low-carbon business.
Comments
Comments are closed.