Tokyo: Shares end at near 4-week low on Wall Street weakness

[TOKYO] Japanese shares closed lower on Tuesday (Apr 12) to their lowest in nearly 4 weeks as heavyweight tech stocks led the decline after they tracked a sharp overnight drop on Wall Street.

The Nikkei share average ended 1.81 per cent lower at 26,334.98, the lowest since Mar 16. The broader Topix fell 1.38 per cent to end at 1,863.63.

Wall Street closed sharply lower overnight as investors started the holiday-shortened week in a risk-off mood, as rising bond yields weighed on market-leading growth stocks ahead of key inflation data.

Resona Asset Management's chief strategist, Koichi Kurose, said concerns over Covid-19 lockdowns in China and rising commodity prices also weighed on investor sentiment in Japan.

Uniqlo clothing shop owner Fast Retailing was the biggest drag on the Nikkei, falling 3.18 per cent. Robot maker Fanuc fell 5.47 per cent and healthcare equipment maker Terumo lost 3.69 per cent.

Game maker Sony Group and Keyence, a maker of sensors and touch panels, pulled the Topix lower, falling 2.65 per cent and 3.45 per cent, respectively.

Shipping was the worst sector among the Tokyo Stock Exchange's 33 sub-indexes, losing 5.68 per cent. Mitsui OSK Lines fell 6.07 per cent and was the worst performer on the Nikkei.

Peers Kawasaki Kisen and Nippon Yusen followed, falling 5.84 per cent and 5.74 per cent.

Airlines were the top performers, gaining 0.45 per cent, after the S&P 1500 Airline index rose 2.7 per cent overnight on falling crude prices.

Takashimaya jumped 4.09 per cent and was the top gainer on the Nikkei after the department store operator forecast a better-than-expected annual profit and announced an outlet closure in Tokyo.

Peer Isetan Mitsukoshi Holdings followed, with a 2.42 per cent gain. REUTERS