TOKYO, June 29 (Xinhua) -- Tokyo stocks closed lower Wednesday, with the benchmark Nikkei stock index snapping a four-day winning streak, after a plunge in U.S. consumer confidence data compounded fears of a recession hitting the world's largest economy.
The 225-issue Nikkei Stock Average dropped 244.87 points, or 0.91 percent, from Tuesday to close the day at 26,804.60.
The broader Topix index, meanwhile, lost 13.81 points, or 0.72 percent, to finish at 1,893.57.
Local brokers said that investor sentiment was dampened by Wall Street's sharp decline overnight amid a broad sell-off.
They added the sell-off was triggered by data from the Conference Board showing that consumer confidence in June plunged to 66.4 to hit its lowest level since March 2013 from 73.7 in May.
"The data showed that inflation was limiting consumer spending, raising concerns that it will not just slow down the economy, but also induce a possible recession," Masahiro Yamaguchi, head of investment research at SMBC Trust Bank, was quoted as saying.
Other market strategists said the subpar consumer confidence data fueled concerns about a recession in the U.S. as the U.S. Federal Reserve's response to rising inflation has and will likely continue to be to aggressively hike its key interest rate.
They also noted that a spike in oil prices also weighed on the market Tuesday.
"Today's market decline is solely due to Wall Street's loss, which was driven by concerns over consumption," Shuji Hosoi, senior strategist at Daiwa Securities, was quoted as saying.
"Oil price hikes also weigh on sentiment. Globally, the solution for this has not been identified," he added.
The yen's retreat against the U.S. dollar, did, however, provide some relief and help trim losses, investment analysts said.
By the close of play, rubber, glass and ceramics, and mining issues comprised those that declined the most.
Technology shares tracked their U.S. peers lower, with Nikkei heavyweight Tokyo Electron dragging down the broader market with a 4.7 percent slump, while Advantest slipped 1.2 percent.
Taiyo Yuden, meanwhile, lost 2.3 percent, while technology investor SoftBank Group ended the day 1.8 percent lower.
The biggest loser on the Nikkei was display manufacturer Nippon Electric Glass, who ended down 4.7 percent.
Following the government saying it intended to utilize nuclear power as far as possible, as record-high temperatures have threatened a power crunch in areas including those that are served by Tokyo Electric Power Holdings (TEPCO), the utility bucked the downward trend.
TEPCO ended 4.7 percent higher following the news.
On the Prime Market on Wednesday, 1,662.92 million shares changed hands, rising from Tuesday's volume of 1,226.85 million shares.
The turnover on the third trading day of the week came to 3,871.44 billion yen (28.45 billion U.S. dollars). ■
