TOKYO: Japan’s Nikkei stock average slid on Monday, taking cues from weakness in US shares which fell on Friday amid worries over inflation and likely aggressive Federal Reserve policy tightening.
The Nikkei sank 2.2% as of the midday break, while the broader Topix retreated 1.69%. Of the Nikkei’s 225 component stocks, 206 fell while 15 rose and four were flat.
Utility stocks were the only ones to advance, while industrials were the biggest losers. US futures pointed to declines for Wall Street on Monday, with the tech-focused Nasdaq indicated to fall 1.17% and the S&P 500 likely to end 1.26% lower.
The Nasdaq sank 1.22% on Friday, while the S&P 500 lost 0.57%.
Tokyo’s Nikkei index opens lower after US falls
US data due Wednesday is expected to show only a slight easing in inflation, keeping the Fed on course to hike rates by at least 50 basis points in June. Among heavyweight losers, Uniqlo store operator Fast Retailing tumbled 6.25%, while SoftBank Group slid 3.25%.
Toyota Motor lost 0.9%.
The biggest decliner was JFE, which plunged 8.97%, after the steel company refrained from giving a forecast for the current fiscal year in after-the-bell earnings on Friday, citing an uncertain outlook.
Peers also suffered, with Nippon Steel sinking 6.21% and Pacific Metals losing 6.02%.
Travel stocks slumped as well, with tour agency H.I.S. falling 4.58% and airline ANA Holdings losing 4.12%. NTT Data shares were the standout winners, surging 14.72%.
The company will hold a joint news conference at 1 p.m. local time on Monday with NTT, which slipped 1.53%, with both companies’ CEOs attending.
It did not provide a reason for holding the briefing.
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