Tokyo: Nikkei closes down 1.3% on weak US data

[TOKYO] Tokyo's benchmark Nikkei index dropped more than 1.3 per cent on Thursday, with investors discouraged by a trove of weak economic data and earnings reports that pointed to a severe US economic slowdown.

The Nikkei 225 fell 1.3 per cent, or 259.89 points, to close at 19,290.20, while the broader Topix index lost 0.8 per cent, or 11.83 points, to 1,422.24.

"Market sentiment was hit by shocking figures on the US economy," said Daiwa Securities chief technical analyst, Eiji Kinouchi.

Wall Street stocks dropped as economic reports showed US retail sales plunged in March, while industrial production in the same month suffered its steepest drop since 1946.

"A period of panic selling appeared to be ending but uncertainties surrounding the coronavirus have meant investors are still nervous," Mr Kinouchi told AFP.

The US dollar fetched 107.85 yen in Asian afternoon trade, against 107.48 yen in New York.

In Tokyo, blue-chip exporters were lower. Sony slipped 1 per cent to 6,700 yen as Toyota dropped 2 per cent to 6,602 yen, with Honda down 3.8 per cent at 2,280 yen.

But FujiFilm, which is conducting clinical trials of its anti-flu drug Avigan for coronavirus patients, gained 1.2 per cent to 5,445 yen.

SoftBank Group jumped 2.2 per cent to 4,430 yen.

AFP