TOKYO, Jun 26 (NNN-NHK) – Japan’s benchmark Nikkei stock index closed lower today, extending losses for a third-straight day, with technology shares following their U.S. peers lower, amid global economic concerns.
The 225-issue Nikkei Stock Average dropped 82.73 points, or 0.25 percent, from Friday to close the day at 32,698.81.
The broader Topix index, meanwhile, lost 4.56 points, or 0.20 percent, to finish at 2,260.17.
Local brokers said, Wall Street’s drop on Friday dented investor sentiment, with chip issues here taking a hit following the tech-heavy Nasdaq booking sharp losses.
In a day of choppy trade with a weak yen giving exporters a lift and some investors buying on dips, the index headed into negative territory finally with concerns over the global economic outlook weighing on the market mood, market strategists here said.
Specifically, they pointed to a slowdown in business activity in a number of major European economies according to S&P Global’s latest Purchasing managers’ surveys.
“But the benchmark eventually succumbed to the downward momentum to close lower for the third consecutive day, pulled down by the worsening global economic sentiment,” Maki Sawada, a strategist at Nomura Securities Co., was quoted as saying.
Chip-liked issues followed their U.S. peers lower, with chip-testing equipment maker Advantest losing 1.0 percent and semiconductor equipment maker Tokyo Electron falling 0.8 percent.
Nikkei heavyweight Fast Retailing, operator of the Uniqlo chain of clothing stores, dragged the broader market lower, ending the day 0.6 percent lower.
The yen’s decline versus the U.S. dollar following remarks by U.S. Federal Reserve officials regarding further aggressive interest rate hikes looking ahead, in contrast to the Bank of Japan’s continued ultra-loose policy, gave exporters here a boost.
Among these, Toyota Motor accelerated 1.0 percent, while Nikon jumped 3.6 percent. Game and console maker Nintendo was another notable winner, adding 0.9 percent.
By the close of play, electric power and gas, wholesale trade and bank issues comprised those that declined the most.
The turnover on the Prime Market on the first trading day of the week came to 3,260.37 billion yen (22.77 billion U.S. dollars).– NNN-NHK
