Tokyo stocks turned down Wednesday, meeting with selling triggered by Wall Street’s further plunge.
The 225-issue Nikkei average of the Tokyo Stock Exchange gave up 362.39 points, or 1.28%, to finish at 28,044.45, after surging 582.01 points Tuesday.
The Topix index of all TSE first section issues shed 12.50 points, or 0.66%, to end at 1,895.24, following a 28.88-point gain the previous day.
Stocks nosedived right after the opening bell, as investors rushed to sell in view of all three major U.S. market indexes including the Dow Jones Industrial Average extending their losing streaks Tuesday due to weaker-than-expected economic data.
The market regained lost ground to some extent after the initial selling spree. But downward pressure built up again in the afternoon following a drop in U.S. index futures in off-hours trading, brokers said.
“Now that the earnings season is over in Japan, investors are getting trading cues from overseas markets amid a dearth of major events in the country,” said Maki Sawada, strategist at Nomura Securities Co.
Sawada also noted that the market has been underpinned by buying of stocks of companies with rosy earnings prospects.
“Bucking the overall downtrend, participants actively hunted bargains,” Hirohumi Yamamoto, strategist at Toyo Securities Co., pointed out.
On the TSE first section, decliners outnumbered gainers 1,453 to 662 while 76 issues were unchanged. Volume fell to 1.164 billion shares from Tuesday’s 1.231 billion shares.
Major Nikkei components suffered heavy blows, with clothing retailer Fast Retailing sinking 3.13% and technology investor SoftBank Group 2.05%.
Toyota snapped its three-session winning streak on media reports that the leading automaker will curb domestic production amid the global semiconductor shortage.
Other noticeable losers included advertising giant Dentsu and machinery-maker Komatsu.
Meanwhile, Japan Steel Works soared 4.75% and Mitsubishi Chemical 2.86% after announcing the completion of a joint experimental plant to mass-produce gallium nitride wafers.
Technology and entertainment giant Sony was among stocks that attracted bargain hunters.
In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average fell 490 points to end at 27,970.
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