Tokyo: Nikkei hits one-month low as US futures slump

[TOKYO] Japan's Nikkei index on Thursday dropped to its lowest in one month, as investors sold off heavyweights including SoftBank Group and Fast Retailing, tracking a slump in US futures during the Asian trade.

The Nikkei share average closed 2.13 per cent weaker at 28,930.11, the lowest since Feb 5, while the broader Topix lost 1.04 per cent to 1,884.74.

"There are uncertainties in the move of US bond yields, which has made the market outlook unclear," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.

Resurgent worries about rising US bond yields also hit global shares as investors maintained a cautious stance and awaited to see if Federal Reserve chair Jerome Powell will address concerns about the risk of a rapid rise in long-term borrowing costs.

E-mini S&P futures slipped 0.45 per cent while the futures for the Nasdaq, the unequivocal leader of the post-pandemic rally, fell 0.74 per cent to a two-month low.

In Japan, Fast Retailing, the Uniqlo brand clothing store operator, fell 5.45 per cent, dragging the index the most, while SoftBank Group dropped 5.19 per cent and Tokyo Electron lost 2.43 per cent.

SoftBank Group's fall came in the wake of news that British supply chain finance firm Greensill Capital, which is backed by the Japanese conglomerate, was in talks to sell large parts of its business.

Hitachi Zosen surged 19.48 per cent after local media reported that the energy and infrastructure company had developed a high-performance solid-state battery.

Ricoh jumped 15.51 per cent after being untraded with a glut of bids following the announcement that the office equipment maker's plan to buy back about 100 billion yen (S$1.24 billion) worth of its own shares.

Shipping firms advanced, with Kawasaki Kisen rising 5.99 per cent, Mitsui OSK Lines adding 3.55 per cent and Nippon Yusen climbing 2.76 per cent.

REUTERS