TOKYO: Japanese stocks closed lower on Friday and posted a weekly decline, as persisting worries about a global economic slowdown amid rising rates dragged Wall Street overnight.
The Nikkei share average ended 1.11% lower at 27,567.65 after plumbing its lowest level since Sept. 7 earlier in the session.
The index lost 2.29% on the week. The afternoon session saw little movement, however, with some market participants suggesting investors were holding back ahead of two national holidays in Japan and the Federal Open Market Committee’s meeting next week.
“With the three-day weekend, the FOMC meeting, and the fact that next week only has three days of trading, it’s hard to buy right now,” said Hiroyasu Mori, a strategist at Okachi Securities.
The broader Topix index dropped 0.61%. US futures fell on Thursday after FedEx withdrew its financial forecast, warning of a deterioration in the global economy.
Earlier in the day, all three major Wall Street indexes declined as a raft of economic data suggested the Federal Reserve would stay aggressive.
A study by the World Bank saying that a “moderate hit to the global economy over the next year could tip it into recession” also weighed on sentiment.
Of the Nikkei’s 225 constituents, 153 declined and 72 advanced. Technology stocks were weak, with the sector down 1.11%.
Chip-making equipment manufacturer Tokyo Electron, a major contributor to the Nikkei, dropped 4.33% and weighed the most on the index.
Uniqlo parent Fast Retailing Co Ltd was the next biggest drag, losing 1.31%.
The utilities sector was the best performer and advanced 1.22% on gains from companies including Kansai Electric Power Co Inc, Tokyo Gas Co Ltd, and Osaka Gas Co Ltd.
The financial sector also gained, rising 0.65% overall.
Tokyo stocks close higher, extending US gains
Fukuoka Financial Group Inc, Resona Holdings Inc, and Shizuoka Bank Ltd were three of the best performers on the index.
Toyota-owned truck maker Hino Motors Ltd rose 0.93% after announcing it would soon restart production on two models affected by a falsified emissions data scandal, but pared gains and was up 0.16% by the close.
Office equipment provider Ricoh Co Ltd gained 1.88% after announcing the acquisition of Cenero LLC, a privately held audiovisual IT solutions company, in a bid to expand its hybrid work services.
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