Tokyo: Shares end lower on weak Wall Street; Toshiba jumps

JAPANESE shares closed lower on Friday (Apr 22) for the first time in 4 sessions, as they tracked Wall Street’s overnight weakness following the US central bank’s views on interest rates, while Toshiba soared after it opened doors for a buyout.

The Nikkei share average ended 1.63 per cent lower at 27,105.26 and the broader Topix was down 1.19 per cent at 1,905.15. Technology and growth stocks led the retreat.

For the week, the Nikkei shed 0.04 per cent, while the Topix was up 0.47 per cent.

Toshiba jumped 4.65 per cent after the embattled Japanese conglomerate said it would solicit deal offers, including on a potential buyout.

Meanwhile, Wall Street ended lower overnight, with the Nasdaq dropping more than 2 per cent, as investors reacted to US Federal Reserve officials, including Chair Jerome Powell, dropping hints of a half-point interest rate increase.

“The Japanese market reacted too much. Investors should have already factored in rising US interest rates,” said Jun Morita, general manager of the research department at Chibagin Asset Management.

“On the other hand, it is hard to make positive bids before the corporate earnings season kicks off.”

Chipmaking equipment maker Tokyo Electron led declines on the Nikkei, falling 2.1 per cent. Uniqlo clothing shop operator Fast Retailing lost 2.7 per cent and technology investor SoftBank Group dropped 3.01 per cent.

All but three sectors among the Tokyo Stock Exchange’s 33 industry sub-indexes fell.

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Tokyo: Stocks close higher

The insurance sector gained 0.91 per cent as US Treasury yields rose.

Airlines gained 0.63 per cent after United Airlines and American Airlines Group predicted a return to profit in the current quarter due to booming travel demand.

Railways gained 0.01 per cent.

Shionogi & Co gained 1.06 per cent after a report that the US government is in talks with the Japanese drugmaker to acquire supplies of its experimental Covid-19 treatment. REUTERS