TOKYO: Japan’s Nikkei share average hit a one-month low on Wednesday, tracking Wall Street’s losses on interest rate jitters, and as investors sold value stocks after recent buying.
The Nikkei was down 0.4% at 32,174.84, as of 0207 GMT.
Earlier in the session, the benchmark fell as much as 1.1% to 31,960.32, its lowest level since Aug. 28. The broader Topix was down 0.33% at 2,364.17.
“The Japanese market tracked Wall Street, which fell amid concerns about rising US Treasury yields and the potential of a partial US government shutdown,” said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
Wall Street’s main indexes fell more than 1% overnight as 10-year Treasury yields held their multi-year highs, with investors still wrestling with prospects for a long period of high interest rates and the economic fallout.
In recent sessions, investors scooped up value stocks to secure rights for dividend payouts, which expire after Wednesday.
“That buying spree seemed to have stopped as investors started worrying about a sell-off after they secured dividend rights,” Arisawa said.
The Topix value share index fell 0.43%, compared with a 0.17% decline in the Topix growth share index. For the month, the value share index has gained 4.7%, outperforming a 2.3% fall in the growth share index.
Among individual stocks, Uniqlo-brand owner Fast Retailing fell 1.75% to drag the Nikkei the most.
Chip-testing equipment maker Advantest slipped 0.7%.
Air-conditioning maker Daikin Industries lost 1.31%.
Drugmaker Daiichi Sankyo jumped 2.6% to become the biggest support to the Nikkei and the top gainer on the index.