TOKYO: Japan’s Nikkei index snapped a four-session rally on Wednesday, tracking overnight weakness on the Wall Street, with heavyweight technology stocks leading the losses.
The Nikkei share average was down 1.07% to 26,759.99.
The broader Topix had slipped 0.77% to 1,892.74.
“Today’s market decline is solely due to Wall Street’s loss, which was driven by concerns over consumption,” said Shuji Hosoi, senior strategist at Daiwa Securities.
“Oil price hikes also weigh on sentiment. Globally, the solution for this has not be identified.”
Wall Street closed sharply lower in a broad sell-off overnight, as dire consumer confidence data dampened investor optimism and fuelled worries over recession and the looming earnings season.
Japan’s Nikkei rises for 3rd session on tech boost
Chip-making equipment maker Tokyo Electron fell 4.73% and technology investor SoftBank Group slipped 1.79%. Air-conditioner maker Daikin Industries lost 1.56%.
Liquid crystal display maker Nippon Electric Glass fell 4.71% and was the top loser on the Nikkei, followed by delivery services provider Nippon Express Holdings, which fell 4.29%.
Bucking the trend, the utility sector advanced 0.99% after Japan’s Prime Minister Fumio Kishida said the nation would make greatest possible use of nuclear power and secure enough power supply in Japan.
His remark was made as Tokyo’s heat broke nearly 150-year-old records for June and authorities warned power supply remained tight enough to raise the spectre of cuts.
Tokyo Electric Power Holdings jumped 4.73%.
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