Stocks lost further ground on the Tokyo Stock Exchange on Wednesday following an overnight tumble on Wall Street.
The Nikkei 225 slumped 75.58 points, or 0.35 percent, to end at 21,507.54, after losing 238.04 points on Tuesday.
The Topix index of all first-section issues finished down 9.78 points, or 0.60 percent, at 1,615.89. It had fallen 11.94 points the previous day.
The Tokyo market got off to a weak start on the heels of a setback in U.S. stocks the previous day. The Nikkei briefly lost over 300 points early in the morning.
But both indices trimmed losses throughout Wednesday’s session, backed by bargain hunting mainly of semiconductor-related names, brokers said.
Investors were reluctant to tilt their positions significantly ahead of Thanksgiving Day in the United States on Thursday, an official at a bank-affiliated securities firm said.
Yoshihiko Tabei, chief analyst at Naito Securities Co., said the Tokyo market’s losses were limited due to a lack of futures-linked arbitrage selling.
Resource-related issues such as steel-makers, shipping firms and trading houses were major losers. “Investors were concerned about the outlook of the global economy,” an official at a major brokerage firm said.
Falling issues outnumbered rising ones 1,431 to 596 in the TSE’s first section, while 85 issues were unchanged.
Volume decreased to 1.392 billion shares from 1.430 billion shares on Tuesday.
Oil names were downbeat after the key West Texas Intermediate crude oil futures contract hit its lowest close since October last year. They included JXTG, Showa Shell, Cosmo Energy and Idemitsu.
Square Enix sagged 3.98 percent after Credit Suisse Securities (Japan) Ltd. revised down its investment rating and target stock price for the game maker.
Other major losers included clothing retailer Fast Retailing, Nippon Steel & Sumitomo Metal, and shipping firm Mitsui O.S.K.
On the other hand, semiconductor-related issues attracted buybacks after recent declines. Major gainers included Tokyo Electron, Advantest, Screen and Sumco.
Also on the plus side were mobile phone carrier SoftBank Group and power firm Tepco.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average dropped 20 points to end at 21,520.