Japanese shares end lower on Fed rate hike worries
TOKYO — Japanese shares ended lower on Thursday, tracking overnight losses on Wall Street, as concerns around corporate outlook rose after the U.S. Federal Reserve projected continuing with interest rate hikes for a longer period.
The Nikkei ended 0.37% lower at 28,051.70, after briefly turning positive. The broader Topix inched down 0.18% to 1,973.90.
U.S. stocks closed lower in volatile trading overnight, following a policy announcement by the Fed that raised interest rates by an expected 50 basis points, but its economic projections see higher rates for a longer period.
“The Japanese market got rid of the negative factors after the FOMC (Federal Open Market Committee). But, there are still concerns about outlook of the economy as the Fed will continue raising rates,” said Chihiro Ohta, assistant general manager at the investment research and investor services at SMBC Nikko Securities.
“That is why the trading was mixed.”
Uniqlo clothing brand owner Fast Retailing fell 0.79%, dragging the Nikkei the most. Chipmaking equipment maker Tokyo Electron lost 0.69%.
Cosmetic maker Shiseido slipped 2.32% after gaining almost 10% this month.
Industry machinery makers were the best performers on the Nikkei, with Kawasaki Heavy Industries jumping 5.02%, Mitsubishi Heavy Industries rising 4.13% and Hitachi Zosen gaining 3.10%.
Department store operators climbed, with Takashimaya Isetan Mitsukoshi Holdings rising 2.02% and 2.93%, respectively.
Euglena surged 10.43% after the bio venture firm said it was studying the possibility of developing and operating a biorefinery in Malaysia with Italian energy group Eni and Malaysia’s Petroliam Nasional Berhad (Petronas).
Oil explorers rose 1.91% to become the top gainer among the Tokyo Stock Exchange’s 33 industry sub-indexes. (Reporting by Junko Fujita; Editing by Rashmi Aich and Uttaresh.V)
Comments are closed.