Nikkei down 1.05% on fears of recession amid continued rate hikes

Share your love

The main index of the Tokyo Stock Exchange, the Nikkei, fell 1.05% on Monday, on renewed fears of a recession in the United States and Europe on the prospect of prolonged interest rate hikes amid inflation.

The Nikkei, which groups the 225 most representative titles of the market, lost 289.48 points, to 27,237.64 integers.

The broadest selective, Topix, which includes the firms of the main section, those with the largest capitalization, fell by 0.76% or 14.80 points, to stand at 1,935.41 units.

The Tokyo parquet opened lower and pessimism prevailed among investors throughout the session, after the publication of weaker than expected economic indicators in the United States, while persisting in its stance of raising rates.

The similar approach among major European powers helped dampen risk appetite in Tokyo, on concerns that holding up the tax hike for longer than expected would drag their economies into recession.

The Nikkei closed at its lowest level in six weeks, also awaiting the conclusion of the Japanese central bank’s monetary policy meeting, which is expected to maintain its ultra-low rates, in contrast to the stance of the US and Europe.

The mining sector posted the biggest losses of the day, along with precision instruments and transport equipment.

Semiconductor analysis equipment maker Lasertec had the largest trading volume and fell 4.13%.

The textile group Fast Retailing (TYO:9983), owner of clothing store chain Uniqlo, was down 1.1% and telecoms and investment conglomerate Softbank (TYO:9984) was left 0,56 %.

The automotive company Toyota (TYO:7203) gave up 1.59%, the multinational technology and entertainment company Sony (TYO:6758) was devalued by 1.01% and video game developer and publisher Nintendo (TYO:7974) lost 0.93%.

Read Also   New cases and mortality from covid-19 decrease in Costa Rica

Contrary to the general trend, the financial sector remained afloat today. Mitsubishi UFJ Bank (TYO:8306) rose 1.44% and competitor Sumitomo Mitsui (TYO:8316) advanced by 1.22%.

In the main section, 1,082 companies were down versus 667 that rose, while 90 closed unchanged.

The trading volume amounted to 2.36 trillion yen (about 16,350 million euros).

Share your love

Leave a Reply

Your email address will not be published. Required fields are marked *