TOKYO: Japan’s Nikkei share average closed at its lowest level in almost 10 months in the first trading session of 2023, tracking Wall Street’s weak finish overnight, while the yen’s strength against the dollar also weighed on sentiment.
The Nikkei fell 1.45% to 25,716.86 on Wednesday, its lowest close since March 15. The broader Topix lost 1.25% to 1,868.15.
Wall Street’s main indexes closed lower overnight, while investors worried about the US Federal Reserve’s interest-rate hike path as they awaited minutes from its December policy meeting.
In Japan, clothing brand Uniqlo’s owner Fast Retailing lost 1.24%, dragging the Nikkei the most, while chip related Advantest and Tokyo Electron fell 2.48% and 1.21%, respectively.
Drugmakers Daiichi Sankyo tanked 5.76% and Eisai slipped 6.01%. On top of Wall Street weakness, the yen’s gain against the dollar also weighed on investor sentiment, Maki Sawada, strategist at Nomura Securities, told reporters.
Tokyo stocks close sharply lower
The yen rose to a seven-month high against the greenback on Tuesday on expectations that the Bank of Japan might move away from its ultra-easy monetary policy. All but three industry sub-indexes fell.
The banking sector jumped 2.67% to become the top gainer among the 33 industry groups, while insurance firms gained 0.75%.
The brokerage sector inched up 0.06%. Of the 225 Nikkei components, 30 stocks rose and 193 declined, while two were flat.
The volume of shares traded on the Tokyo Stock Exchange’s main board was 1.3 billion, compared to the average of 1.18 billion in the past 30 days.
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