TOKYO: Japan’s Nikkei recorded its worst week since late November, as a surge in US inflation and little progress in talks between Ukraine and Russia’s foreign ministers soured risk sentiment.
The Nikkei share average closed 2.05% lower at 25,162.78, coming off the day’s low. The benchmark fell 3.17% for the week, the most since a 3.34% retreat in the period ended Nov. 26, and marking its fourth straight weekly decline.
The benchmark had plumbed its lowest close since November 2020 at 24,717.53 on Wednesday, before rallying the most in 21 months the very next day.
The broader Topix lost 1.67% on Friday, down 2.46% for the week, and also registering a four-week losing run.
“In this environment where it’s not possible to make a forecast for what’s coming, you can’t expect any real attempt to take stocks higher,” said a trader at a domestic securities firm.
Of the Nikkei’s 225 component stocks, 142 fell, 77 rose and six were flat.
The consumer, real estate and tech sectors dropped the most, while energy shares saw sharp gains as crude resumed its climb.
The stand-out loser was tech investor SoftBank Group, declining 6.21% to become the biggest percentage decliner and biggest drag by index points. Shares in the company, which is heavily invested in Chinese startups, slid back to the cusp of their May 2020 low.
Chipmaking giant Tokyo Electron lost 2.67% to be the second-largest drag on the benchmark, followed by the 2.25% drop for Uniqlo store operator Fast Retailing, which said late Thursday that it would suspend its Russian business, backtracking on an earlier decision to keep stores open.
Energy- and commodity-related stocks advanced, with JGC Holdings soaring 10.64% to be the Nikkei’s top performer, followed by a 3.58% advance for refiner Inpex and a 3.10% gain for Pacific Metals Co.
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