TOKYO: Tokyo shares fell 0.67 percent on Thursday as fresh worries set in over the US economy, while energy plays were hurt by talk among Western powers on releasing oil reserves to damp rising prices.
The Nikkei 225 index at the Tokyo Stock Exchange dropped 67.78 points to 10,114.79 while the Topix index of all first-section issues sank 0.77 percent, or 6.69 points, to 857.74.
"Recent downbeat US economic data and a weaker share performance in the Chinese bourse are leading to a breather phase," Shinkin Asset Management fund manager Naoki Fujiwara told Dow Jones Newswires.
Investors were reluctant to bid up partly because of a raft of Japanese economic data scheduled for release Friday and an expected cabinet decision on a proposed sales tax-hike bill aimed at helping rein in Japan's massive public debt, he said.
"Risk-taking is in a lull," Yoshihiro Okumura, general manager of research at Chibagin Asset Management, said after softer data on US durable goods orders Wednesday helped push stocks on Wall Street lower.
The yen's downward momentum, which has pushed the Nikkei higher in recent weeks, was easing for now, he added.
In New York, the Dow closed 0.54 percent lower at 13,126.21. The weaker-than-expected durable goods figures followed Tuesday's release of data showing weaker consumer sentiment and falling house prices.
Kazuhiro Takahashi, general manager of investment strategy and research at Daiwa Securities, said "expectations for an improvement of the economy and of Japanese corporate earnings are now largely factored in."
"Additional cues are needed for a further ascent," he said.
Sharp, which surged 15.15 percent Wednesday after announcing the parent company of Taiwan's Foxconn was buying its shares as part of a liquid crystal display panel tie-up, added 6.66 percent to 608 yen.
Energy and commodity firms were hit by fears over falling oil demand in the United States after a report showed stockpiles grew more than expected last week.
Crude costs also fell amid talks among Western powers including the United States, France and Britain over releasing strategic reserves in a bid to slash prices, which have spiked to multi-year highs recently.
Steelmaker JFE Holdings was down 2.94 percent to 1,777 yen while trading house Sumitomo Corp. fell 2.98 percent to 1,203 yen.
Comments
Comments are closed for this article.