Tokyo: Markets close lower after US rout

TOKYO stocks closed lower on Tuesday (Jun 14), with investors taking a risk-averse stance after a rout on Wall Street.

The benchmark Nikkei 225 index was down 1.32 per cent or 357.58 points to end at 26,629.86, while the broader Topix index was down 1.19 per cent or 22.61 points at 1,878.45.

The dollar stood at 134.66 yen, against 134.42 yen in New York late Monday.

All-around US falls “piled pressure on investors to avert risks and sell”, prompting a series of sharp drops among Tokyo shares, Okasan Online Securities said.

Wall Street entered a bear market on Monday as investors bet on more aggressive Federal Reserve rate hikes to address runaway inflation.

The S&P 500, the broad-based Wall Street equity index, marked a drop of more than 20 per cent from its most recent peak in January.

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“Growing concern over US inflation planted in investors a strong sense of vigilance over monetary tightening by the Federal Reserve,” Okasan said.

Toyota was down 1.71 per cent at 2,095.0 yen, Sony Group plunged 2.60 per cent to 11,230 yen, and Uniqlo operator Fast Retailing was off 0.16 per cent at 67,050 yen.

SoftBank Group tumbled 2.55 per cent to 5,033 yen while Toshiba dropped 0.74 per cent to 5,588 yen. AFP