Business / Financial Markets | TSE DATA & REPORT

Nikkei average closes at 22,532 after falling on overnight Wall Street plunge

JIJI

Stocks sank further on the Tokyo Stock Exchange on Friday, with investor sentiment dampened by a Wall Street plunge overnight.

The 225-issue Nikkei average slumped 126.08 points, or 0.56 percent, to end at 22,532.08. On Thursday, the key market gauge dropped 182.96 points.

The Topix index of all first-section issues closed down 11.79 points, or 0.69 percent, at 1,692.85, after falling 9.23 points the previous day.

The Tokyo market came under heavy selling from the outset of Friday’s session after a sharp plunge in U.S. equities the previous day. The Nikkei briefly lost over 440 points in the early morning.

After the initial selling ran its course, however, both indexes recouped much of the early losses in line with a recovery in Shanghai stocks from a lower start and the yen’s weakening against the dollar, brokers said.

A strong risk-off mood in the early morning eased later due to a recovery in Shanghai stocks following the release of Chinese gross domestic product data for the July-September period, which, although weaker than expected, were at least “not a negative surprise,” an official of a bank-affiliated brokerage firm said.

Concerns over the outlook of the Chinese economy that pushed down U.S. stocks overnight Thursday abated a little in Tokyo trading, an official of a midsize securities firm said.

“Buying on dips supported the market’s downside after the initial selling,” said Mitsuo Shimizu, chief strategist at Aizawa Securities Co.

Falling issues outnumbered rising ones 1,409 to 616 in the TSE’s first section, while 84 issues were unchanged.

Volume increased to 1.28 billion shares from 1.22 billion Thursday.

Construction machinery makers posted massive losses after U.S. peer Caterpillar fared poorly overnight. Komatsu sagged 3.12 percent, Hitachi Construction 2.43 percent and Sumitomo Heavy was down 2.13 percent.

Yamada Denki plunged 6.65 percent after the electronics retailer announced Thursday a downward revision of its consolidated earnings forecast for the year to March 2019.

Other major losers included mobile phone carrier SoftBank Group and game-maker Nintendo.

By contrast, Don Quijote gained 2.53 percent after JPMorgan Securities Japan Co. revised up its target stock price for the discount store chain from ¥6,800 to ¥8,400, brokers said.

Also higher were pharmaceutical firm Eisai and clothing retailer Fast Retailing.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average fell 60 points to end at 22,530.