Economic news

Japanese Shares Fall on Weak Wall St Finish, BOJ's Absence

TOKYO, May 12 (Reuters) - Japanese shares fell on Wednesday, following a weak finish on Wall Street and as investors were concerned by the Bank of Japan’s absence despite a sharp drop in the previous session.

The Nikkei share average fell 0.83% to 28,366.44 by 0204 GMT, after shedding more than 3% on Tuesday. The broader Topix lost 1.07% to 1,885.46.

Overnight, Wall Street ended lower amid speculations that surging commodity prices and growing inflationary pressure could lead to earlier-than-expected rate hikes.

“Today’s market is dragged down by the Dow’s decline,” said Yoshihiro Takeshige, general manager at investment management department of Asahi Life Asset Management.

“The Bank of Japan seems to have become less active in supporting the market, which made investors cautious about making bids.”

The Bank of Japan, which typically buys stocks in exchange-traded funds (ETFs) in bulk when markets are falling, did not step in on Tuesday, when both the Nikkei and Topix marked their biggest daily drop since Feb. 26.

SoftBank Group dragged the Nikkei lower by losing 2.9% despite a local media report that the tech start-up investor was set to post record net profit later in the day.

Nissan Motor tumbled 11.87% after the automaker flagged a weaker-than-expected guidance for the current fiscal year.

Toyota Motor, which is slated to issue its outlook later on Wednesday, edged down 0.55%.

The largest percentage gainers in the index were Nichirei , up 5.1%, followed by Yamaha, gaining 5.08%, and Sharp Corp, up 5.05%.

The largest percentage losers in the index were Mitsui E&S Holdings, tumbling 14.26%, and Pacific Metals, shedding 13.56%.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)

Source: Reuters

To leave a comment you must or Join us

More news

Back to economic news list

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree