Tokyo stocks close lower on profit-taking, weak U.S. stock futures-Xinhua

Tokyo stocks close lower on profit-taking, weak U.S. stock futures

Source: Xinhua| 2022-06-22 19:38:13|Editor:

TOKYO, June 22 (Xinhua) -- Tokyo stocks retreated from their earlier increase and closed lower on Wednesday, with market players locking in profit following the Nikkei index's surge the previous day and sentiment dampened by U.S. stock futures' weakness.

The 225-issue Nikkei Stock Average closed down 96.76 points, or 0.37 percent, from Tuesday at 26,149.55.

The broader Topix index closed 3.55 points, or 0.19 percent, lower at 1,852.65.

On the top-tier Prime Market, decliners were led by mining, marine transportation, and retail issues.

Tokyo stocks started the trading day higher but soon lost momentum and dipped into the negative territory in the afternoon due to investors' profit-taking following the Nikkei's nearly 2-percent advance on Tuesday, while plunging U.S. stock futures also dampened investor confidence.

Mining and air transportation sectors were among those that dropped Wednesday after Tuesday's sharp rises.

Oil explorer Inpex plummeted 3.9 percent, and airline operator ANA Holdings shrank 1.8 percent.

The stocks were additionally pressured by lingering speculations that the Federal Reserve may risk causing a recession in the United States with its aggressive interest rates hikes aimed at curbing stubbornly high inflation, which have caused higher borrowing costs for firms and households.

On the other hand, automakers and other exporters attracted buying on the weaker yen, as profits earned overseas are boosted when repatriated, fueling dealers' confidence in the market, which has recently faced sell-offs on concerns over the prospect of the global economy.

Toyota Motor gained 0.8 percent, and Nissan Motor surged 2.2 percent.

Among Prime Market issues, declining issues outnumbered advancing ones 1,099 to 670, while 69 finished the day unchanged.

Trading volume on the Prime Market decreased to 1,111.33 million shares compared to Tuesday's 1,113.40 million.