TOKYO, July 6 (Xinhua) -- Tokyo stocks closed lower Wednesday due to rising concerns over the U.S. economy, while market confidence was hurt by a recent surge in COVID-19 cases across Japan.
The 225-issue Nikkei Stock Average closed down 315.82 points, or 1.20 percent, from Tuesday at 26,107.65.
The broader Topix index ended 23.15 points, or 1.23 percent, lower at 1,855.97.
On the top-tier Prime Market, decliners were led by mining, oil and coal product, and insurance issues.
Stocks remained in the negative territory throughout the day on fears that the U.S. Federal Reserve's aggressive rate hikes to tame inflation may lead to a recession in the world's largest economy.
Concerns were heightened after two-year U.S. Treasury bond yield briefly increased above that of 10-year bond yield overnight, as inverted yields are considered as a forward indicator of a recession.
Sectors sensitive to business cycles, such as energy and steel issues, were sold due to rising concerns over the future of the U.S. economy, said Maki Sawada, a strategist at Nomura Securities Co.'s investment content department.
Investors' sentiment was also dampened by a surging trend in the number of daily COVID-19 cases across Japan recently, which led to speculation that the government may delay the restart of its domestic travel subsidy campaign and curb the number of inbound visitors, according to analysts.
Among Prime Market issues, declining issues outnumbered advancing ones 1,282 to 506, while 50 finished the trading unchanged.
Energy-related stocks plummeted after the benchmark West Texas Intermediate crude oil futures contract for August ended overnight at the lowest level since late April, fueling fears that energy demand will fall in the event of a global recession.
Oil explorer Inpex shed 10.1 percent, while refiners Idemitsu Kosan plummeted 6.1 percent, and Eneos Holdings plunged 4.8 percent.
Among steelmakers, Nippon Steel sank 2.8 percent, and Kobe Steel lost 3.1 percent.
Sony Group decreased 2.5 percent, following media reports that the sales of its PlayStation 5 gaming console had plunged by 26 percent in the April-June period compared to a year earlier.
Welcia Holdings surged 8.8 percent, a day after the drugstore chain operator's earnings for the March-May quarter surpassed market expectations.
Trading volume on the Prime Market increased to 1,389.15 million shares compared to Tuesday's 1,038.18 million. ■