TOKYO, Feb. 15 (Xinhua) — Japan’s benchmark Nikkei stock index closed decrease Wednesday because the market temper was dampened by considerations U.S. inflation might result in a chronic interval of charge hikes by the U.S. Federal Reserve.
The 225-issue Nikkei Stock Average misplaced 100.91 factors, or 0.37 %, from Tuesday to shut the day at 27,501.86.
The broader Topix index, in the meantime, dropped 5.35 factors, or 0.27 %, to complete at 1,987.74.
Local brokers mentioned that higher-than-expected U.S. inflation knowledge sparked considerations the Fed will proceed with its financial tightening coverage longer than beforehand thought.
They highlighted that the U.S. shopper worth index elevated 6.4 % in January from a 12 months earlier, in comparison with median economists’ forecasts for an increase of 6.2 %.
Sentiment turned destructive following an preliminary spherical of shopping for, sellers mentioned, because the U.S. dollar periodically dropped in opposition to the yen hurting exporters, amid broader considerations over U.S. charge hikes persevering with till June or past and stifling financial development.
“As the data on U.S. inflation was slightly higher than expected, investors became cautious about protracted U.S. monetary tightening,” Yutaka Miura, senior technical analyst at Mizuho Securities Co., was quoted as saying.
Domestic company earnings stories lacking expectations additionally triggered promoting, market analysts right here mentioned, with Recruit Holdings, for instance, weighing closely in the marketplace, dropping 4.1 %.
Exporter points dropping floor on a agency yen included Hitachi retreating 0.3 %, whereas Toshiba misplaced 1.7 % on considerations over the conglomerate’s downwardly revised gross sales and working revenue.
Toyota Motor, in the meantime, reversed 0.5 %, though Citizen Watch marked a vibrant spot, climbing 9.2 % to assist trim losses.
Internet and expertise conglomerate Rakuten Group overcame early stress to finish 7.7 % larger, whereas its earnings had been subpar, the market view was that issues had been wanting up for the corporate forward.
“Rakuten’s financial results were certainly bad, but investors seem to think that maybe this is as bad as it will get and the company will be okay from here,” Masahiro Uchikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, was quoted as saying.
By the shut of play, precision devices, pulp and paper, and electrical and fuel shares comprised those who declined probably the most.
The turnover on the third buying and selling day of the week got here to 2,730.40 billion yen (20.47 billion U.S. {dollars}).