Tokyo: Nikkei snaps 4-day rally after Wall Street slump

JAPAN’S Nikkei index snapped a 4-session rally on Wednesday (Jun 29), dragged down by heavyweight technology stocks after Wall Street fell sharply overnight on fears of an economic slowdown.

The Nikkei share average ended 0.91 per cent lower at 26,804.60. The broader Topix lost 0.72 per cent to 1,893.57.

“Today’s market decline is solely due to Wall Street’s loss, which was driven by concerns over consumption,” said Shuji Hosoi, a senior strategist at Daiwa Securities.

“Oil price gains also weigh on sentiment. Globally, the solution for this has not been identified.”

Major Wall Street indexes closed sharply lower in a broad sell-off overnight, as dire consumer confidence data dampened investor optimism and fuelled worries over recession and the looming earnings season.

Chipmaking equipment maker Tokyo Electron fell 5.27 per cent and dragged the Nikkei the most. Technology investor SoftBank Group slipped 1.64 per cent and phone company KDDI lost 1.89 per cent.

Liquid crystal display maker Nippon Electric Glass fell 4.31 per cent and was the top loser on the Nikkei.

Tokyo Electric Power Holdings jumped 5.27 per cent and was the top gainer on the Nikkei, after Japanese Prime Minister Fumio Kishida said the nation would make greatest possible use of nuclear power and secure enough power supply.

His remark came as Tokyo’s heat broke nearly 150-year-old records for June and authorities warned power supply remained tight enough to raise the spectre of cuts.

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The utility sector advanced 1.01 per cent and was the top gainer among the Tokyo Stock Exchange’s 33 industry sub-indexes.

Airlines and railways rose 0.84 per cent and 0.51 per cent, respectively. REUTERS