Tokyo stocks close lower on Wall Street's slip, U.S. economic concerns-Xinhua

Tokyo stocks close lower on Wall Street's slip, U.S. economic concerns

Source: Xinhua| 2022-08-31 19:39:45|Editor: huaxia

TOKYO, Aug. 31 (Xinhua) -- Tokyo stocks closed lower Wednesday tracking overnight losses on Wall Street, with technology and energy shares weighing amid concerns that further U.S. rate hikes could damage its economy.

The 225-issue Nikkei Stock Average lost 104.05 points, or 0.37 percent, from Tuesday to close the day at 28,091.53.

The broader Topix index, meanwhile, fell 5.22 points, or 0.27 percent, to finish at 1,963.16.

Dealers here said that sentiment was dented by U.S. shares losing ground overnight, amid ongoing angst over the U.S. Federal Reserve continuing with its aggressive monetary policy to combat inflation.

They highlighted that data showing U.S. job openings had increased underscored beliefs the Fed will continue with its hefty rate hikes, compounded by recent remarks from New York Federal Reserve President John Williams backing aggressive hikes into next year.

The prospect of the European Central Bank also hiking its rates next week, meanwhile, stoked further fears about a slowdown in the U.S. and Europe's economies, amid aggressive moves to tame soaring inflation, investment analysts here pointed out.

By the close of play, mining, oil and coal product, and marine transportation issues comprised those that declined the most, with stocks that fell outpacing those that rose by 1,161 to 599, while 76 ended the day unchanged.

Energy-oriented shares came under pressure following a slump in oil prices overnight, with exploration giant Inpex sinking 3.5 percent, while refiners Eneos Holdings and Idemitsu Kosan retreated 3.1 and 2.7 percent, respectively.

High-tech issues were also sold, despite Japan's trade ministry announcing Wednesday Japan's industrial output rose 1.0 percent in July from a month earlier, marking the second straight month of increase.

Sony Group dropped 1.7 percent, Shin-Etsu Chemical slipped 1.1 percent, while robot maker Fanuc ended the day down 0.9 percent.

Overall losses were trimmed, however, following Japanese Prime Minister Fumio Kishida announcing the country's COVID-19 border controls will be further eased, with the raising of the cap on daily arrivals from 20,000 to 50,000 to come into effect on Sept. 7.

Brokers here said the news saw transportation issues gain traction on hopes for increased patronage.

As such, ANA Holdings rose 1.2 percent, while flag bearer Japan Airlines advanced 1.3 percent. Keisei Electric Railway, meanwhile, was a notable winner, climbing 3.7 percent by the close.

On the Prime Market on Wednesday, 1,332.18 million shares changed hands, rising from Tuesday's volume of 998.38 million shares.

The turnover on the third trading day of the week came to 3,272.29 billion yen (23.58 billion U.S. dollars).