Tokyo: Nikkei ends lower in line with subdued US futures, Asian shares

JAPAN’S Nikkei ended down on Tuesday (May 24), dragged lower by declines in US futures and Asian shares, while investors struggling to find fresh catalysts after the earnings season came to an end also weighed on sentiment.

The Nikkei share average erased early gains to close 0.94 per cent lower at 26,748.14, falling from the 27,000 psychological level reclaimed a day earlier. The broader Topix fell 0.86 per cent to 1,878.26.

“With little indicators in the market, the number of participants was limited, which made the market waffle,” said Chihiro Ohta, assistant general manager at SMBC Nikko Securities’ investment research and investor services.

The volume of shares traded on the Tokyo Stock Exchange’s main board was 1.17 billion, compared to the average of 1.27 billion in the past 30 days.

Investor sentiment was also weighed down by worries about China’s economic outlook, persistently high inflation across the globe, aggressive attempts by the US Federal Reserve to control rising pricing pressures, and increasing energy costs, said a strategist at a domestic brokerage.

The services sector led declines among the Tokyo Stock Exchange’s 33 industry sub-indexes. Staffing agency Recruit Holdings led the losses on the sub-index with a 6.56 per cent drop.

Medical sersvices platform M3 fell 3.36 per cent.

Banking shares fell 0.11 per cent, reversing early gains underpinned by an increase of current-year interest income outlook by JPMorgan Chase & Co, the largest US lender.

Industry leader Mitsubishi UFJ Financial Group ended 0.69 per cent higher.

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Trading firms were also strong, with Itochu rising 0.77 per cent and Mitsubishi climbing 0.64 per cent. REUTERS