HomeLatestRoundup: Japan's Nikkei ends at 1-month low on world financial issues

Roundup: Japan's Nikkei ends at 1-month low on world financial issues

TOKYO, Feb. 22 (Xinhua) — Japan’s benchmark Nikkei stock index closed at a one-month low on Wednesday as issues had been renewed about rising rates of interest within the United States negatively impacting the worldwide economic system.

The 225-issue Nikkei Stock Average dropped 368.78 factors, or 1.34 p.c, from Tuesday to shut the day at 27,104.32, marking its lowest closing stage since Jan. 23.

The broader Topix index, in the meantime, misplaced 22.21 factors, or 1.11 p.c, to complete at 1,975.25.

Local brokers stated that the market temper was dented on issues that information displaying strong U.S. enterprise exercise may result in the U.S. Federal Reserve persevering with to hike its charges for an extended interval than anticipated and in doing so probably tipping its personal and the worldwide economic system right into a recession.

“Concerns about the global economy have led to weak export shares despite the yen’s depreciation, which usually provides a lift to some companies’ issues on the view that their overseas profits will be boosted when repatriated,” Toshikazu Horiuchi, an fairness strategist at IwaiCosmo Securities Co., was quoted as saying.

Some market gamers additionally hit the sidelines to await additional cues forward of Bank of Japan (BOJ) chief nominee Kazuo Ueda’s decrease home testimony on Friday.

Analysts have highlighted that the market temper has remained cautious following the federal government giving Ueda the nod to go the BOJ, as though he has formally served on the BOJ’s board and is a famend economist, the vast majority of his profession has been spent in academia.

Ueda has additionally advised that the central financial institution’s financial easing coverage must be continued for some time, in distinction to different world central banks elevating their rates of interest to fight inflation, they defined.

Among bellwether points dragging the broader market decrease, Recruit Holdings misplaced 2.1 p.c, whereas Fast Retailing fell 1.8 p.c.

Export-oriented points shedding floor included chip-manufacturing gear maker Tokyo Electron retreating 1.7 p.c, whereas Sony ended the day 2.0 p.c decrease.

Bucking the downward pattern, pharmaceutical firm Daiichi Sankyo discovered favor, closing 3.3 p.c greater to turn out to be one of many day’s high performers.

By the shut of play, electrical energy and fuel, textiles and attire, and electrical equipment shares comprised people who declined probably the most.

The turnover on the third buying and selling day of the week got here to 2,813.13 billion yen (20.88 billion U.S. {dollars}).

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