TOKYO: Japan’s Nikkei share average touched a four-month low on Wednesday as worries about the outlook of the US economy and a stronger yen weighed on investor sentiment.
The Nikkei fell 1.11% to 37,814.04 by the midday break, after falling to as low as 37,742.76, its lowest level since Oct. 25.
The broader Topix was down 1.06% to 2,695.74.
“Rising uncertainties hurt investor sentiment. The market was concerned about the US economy outlook, the impact of US tariff plans and the direction of the yen,” said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
“The Nikkei had been underpinned by robust earnings of domestic firms. But once the index fell below a psychological barrier of the 38,000 level, investors were prompted to sell more stocks.”
The Nikkei fell below the 38,000 level for the first time since Dec. 2.
The yen rose to its highest level since October as data showed US consumer confidence deteriorated at its sharpest pace in 3-1/2 years in February.
In Japan, chip-making equipment maker Tokyo Electron slipped 5.95% to drag the Nikkei the most.
Japan’s Nikkei closes at three-month low as tech shares drag
Technology investor SoftBank Group lost 3%. Investors were cautious as they awaited Nvidia’s quarterly earnings report later in the day, said Arisawa.
Mitsubishi Corp lost 1.99% after surging 8.8% in the previous session on the comments from billionaire investor Warren Buffett about the ownership of Japanese trading firms by his Berkshire Hathaway.
Mitsui & Co lost 2%.
The bank sector fell 2.06% as yields on Japanese government bonds slipped.
Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group fell 2.58% and 1.58%, respectively. Beer maker Sapporo Holdings rose 2.9% to become the biggest percentage gainer on the Nikkei.
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