Tokyo: Shares plunge after Wall Street slip

[TOKYO] Tokyo shares closed lower on Wednesday, tracking falls on Wall Street as weak housing start data fuelled inflation fears.

The benchmark Nikkei 225 index lost 1.3 per cent or 362.39 points to 28,044.45, while the broader Topix index dropped 0.7 per cent or 12.50 points at 1,895.24.

A broad range of shares headed south as investors took a cautious approach after seeing US shares fall, analysts said, with market players also profit-taking after sharp gains in Tokyo on Tuesday.

Wall Street shares slipped on weaker-than-expected housing start data, as it sparked concern that inflation could have a negative effect on the world's largest economy.

"But, once the initial round of selling subsided, moves for further selling receded. Some moves for dip-buying were also seen when the Nikkei dipped below the 28,000 level," SMBC Nikko said.

The US dollar stood at 108.92 yen, nearly flat from 108.91 yen in New York late on Tuesday.

Among major shares, Toyota dropped 1.4 per cent to 8,699 yen. Uniqlo operator Fast Retailing gave up 3.1 per cent to 86,150 yen.

Internet investor SoftBank Group fell 2.1 per cent to 8,470 yen. Industrial robot maker Fanuc fell 0.97 per cent to 25,010 yen.

But some blue-chip shares managed to gain. Nintendo rose 1.2 per cent to 62,590 yen. Sony Group added 1 per cent to 10,420 yen.

AFP