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Tokyo: Stocks close lower on worries over growth
[TOKYO] Tokyo stocks closed lower on Wednesday, following a plunge on Wall Street over worries about US economic growth and with investors cautious ahead of key US jobs data.
The benchmark Nikkei 225 index slipped 0.53 per cent, or 116.72 points, to 21,919.33, while the broader Topix index fell 0.53 per cent, or 8.71 points, to 1,640.49.
Wall Street stocks dropped sharply on Tuesday as the yield curve - the gap between the yields of long-term and short-term bonds - narrowed, hinting at a slowing US economy.
"It's not just about the yield curve though," said Ray Attrill, strategist at National Australia Bank.
There are also "doubts about whether the Trump-Xi handshake and agreed 90-day moratorium on further tariff action was anything more than just that," he said, referring to the China-US summit that sent global shares skyrocketing on Monday.
The dollar was at 113.00 yen in Asian trade, against 112.78 yen in New York and 113.15 yen in Tokyo late on Tuesday.
In Tokyo share trading, drug giant Takeda gained 1.07 per cent to 4,240 yen after the company's shareholders approved a plan to buy Irish pharmaceuticals firm Shire in a deal worth around US$60 billion, the biggest foreign takeover ever by a Japanese firm.
China-related shares were lower, with industrial robot maker Fanuc dropping 3.41 per cent to 17,955 yen and electronic parts maker Rohm down 1.47 per cent at 8,030 yen.
Banks were also lower, with Mitsubishi UFJ off 0.87 per cent at 610.9 yen, Sumitomo Mitsui Financial down 0.46 per cent at 4,080 yen and Mizuho Financial down 0.48 per cent at 185 yen.
On Wall Street, the Dow ended down 3.1 per cent at 25,027.07.