Tokyo: Nikkei falls on slowdown worries, energy losses
JAPAN’S Nikkei fell on Wednesday (Jul 6) after a 2-day rally, dragged down by energy stocks, as sentiment was weighed by fears of a global economic slowdown.
The Nikkei share average fell 1.2 per cent to 26,107.65, while the broader Topix slipped 1.23 per cent to 1,855.97.
“Investors’ focus have shifted to slowdown risks stemming from the ongoing tightening monetary policy,” said Ikuo Mitsui, fund manager at Aizawa Securities.
“Wall Street rose overnight but that was because investors bought back growth shares that were beaten-down on concerns about rate increases.”
In Japan, oil explorers tumbled almost 10 per cent to become the worst performer among the 33 industry sub-indexes on the Tokyo Stock Exchange.
Crude futures rebounded on Wednesday as investors piled back in after the heavy rout in the previous session, shifting their focus again to supply concerns even as worries about a recession mounted.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Refiners lost 5.12 per cent and utilities fell 3.73 per cent.
Oil explorer Inpex was the worst performer on the Nikkei, down 10.05 per cent. Refiner Idemitsu Kosan lost 6.1 per cent and Tokyo Electric Power Company Holdings tumbled 6.28 per cent.
Travel and leisure-related shares also fell, as mass Covid-19 testing in China stocked fears of potential lockdowns.
Insurance sector fell 4.47 per cent, with T&D Holdings losing 6.14 per cent and Dai-ichi Life Holdings falling 5.58 per cent.
Trading firms Mitsui & Co and Mitsubishi fell 5.45 per cent and 4.92 per cent, respectively, after former Russian president Dmitry Medvedev made comments threatening the loss of oil and gas supply to Japan.
Bucking the trend, Eisai jumped 5.87 per cent after the drug maker and its partner Biogen said the US Food and Drug Administration will expedite its review of experimental Alzheimer’s drug lecanemab. REUTERS
Share with us your feedback on BT's products and services
