TOKYO, Sept. 26 (Xinhua) — Japan’s benchmark Nikkei stock index closed sharply decrease Monday amid issues charge hikes to fight inflation within the United States and Europe may result in a worldwide financial slowdown and harm Japanese exporters.
The 225-issue Nikkei Stock Average dropped 722.28 factors, or 2.66 p.c, from Thursday to shut the day at 26,431.55.
The broader Topix index, in the meantime, misplaced 51.84 factors, or 2.71 p.c, to complete at 1,864.28.
Local sellers stated that traders had been in a risk-off temper following a three-day weekend right here, with the market temper dented by Japan’s intervention into the foreign money market on Thursday for the primary time since 1998 to bolster what the federal government right here has described as one-sided, speculative yen strikes in opposition to the U.S. dollar.
With the Bank of Japan staying pat on its ultra-loose financial coverage final week and indicating charge hikes weren’t within the foreseeable future, sentiment was additional soured by the U.S. Federal Reserve alluding to heftier charges hikes forward and stoking additional issues over a recession.
“Japanese shares extended losses in the afternoon as investors’ concerns about a slowdown in the global economy grew one step further after the U.S. Federal Reserve hinted at raising the benchmark rate to around 5 percent in 2023,” Masahiro Yamaguchi, head of funding analysis at SMBC Trust Bank, was quoted as saying.
“So far, a weak yen has been supporting export-related issues, but the gloomy outlook of overseas economies has started to fan fears about the earnings of such Japanese companies,” stated Yamaguchi.
Other funding analysts concurred following current charge hikes by central banks in Europe, with Aizawa Securities’ Yasushi Yokoyama saying, “The risk of monetary tightening causing a recession has heightened. It’s not a situation where we can aggressively buy stocks.”
By the shut of play, mining, oil and coal product, and transportation gear points comprised people who declined probably the most on the Prime Market, and falling points outpaced rising ones by 1,687 to 124, whereas 26 ended the day unchanged.
Nikkei heavyweights dragged the broader market down, with expertise startup investor SoftBank Group slumping 5.2 p.c, whereas chip-making gear producer Tokyo Electron dropped 4.1 p.c.
Exporters misplaced floor over issues of a worldwide recession impacting abroad earnings, with Mitsubishi Motors reversing 4.4 p.c, Mazda Motor skidding down 5.6 p.c, whereas Toyota Motor misplaced 3.2 p.c.
Energy-oriented points had been additionally among the many day’s notable losers, with oil exploration large Inpex plunging 9.9 p.c, Eneos Holdings sinking 5.6 p.c, whereas Idemitsu Kosan tumbled 7.6 p.c.
On the Prime Market on Monday, 1,526.63 million shares modified arms, rising from Thursday’s quantity of 1,144.75 million shares.
The turnover on the primary buying and selling day of the week got here to three,342.01 billion yen (23.24 billion U.S. {dollars}).
Markets right here had been closed on Friday for a nationwide vacation.