Stocks

Japanese shares fall as tech heavyweights track Wall Street losses

Japanese shares closed lower on Monday, with tech heavyweights leading the decline after Wall Street fell at the end of last week on higher bond yields.

The Nikkei share average fell 0.47% to 28,794.50, recovering some ground lost in early trade as China cut its benchmark lending rates.

The broader Topix inched 0.1% lower to 1,992.59.

“The Japanese market tracked Wall Street’s declines (on Friday)… investors were concerned about inflation in Europe, which is higher than expected,” said Shuji Hosoi, a senior strategist at Daiwa Securities.

“The yields rose because of that and that spurred concerns about an economic slowdown. Today, Japanese manufacturers were hit by these worries.”

The rise in U.S. yields and slowdown concerns due to fears of aggressive policy tightening to tame inflationary pressures in Europe, including the UK, hit Japanese companies which are mainly exporters, he added.

U.S. stocks fell on Friday in a broad sell-off led by mega caps as bond yields rose, with the S&P 500 posting losses for the week after four straight weeks of gains.

Amazon.com, Apple

In Japan, chip-making equipment maker Tokyo Electron was the biggest drag on the Nikkei, dropping 1.97%. Robot maker Fanuc lost 1.93% and sensor maker TDK slipped 2.26%.

Hino Motors fell 3.53% to become the worst performer on the Nikkei as the automaker said it would suspend shipments of some small trucks after confirming that a widespread data falsification scandal included those models.

Energy-related shares rose, with oil explorers and refiners rising 2.47% and 1.77%, respectively.

Inpex Corp rose 3.01% and was the top gainer on the Nikkei. (Reporting by Junko Fujita; Editing by Rashmi Aich and Subhranshu Sahu)


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