Japan’s Nikkei Stock Average fell for three consecutive days on Tuesday on the back of strong monetary tightening in the US and risks to growth from China’s new tougher restrictions on Corona, but the bargain chase happened and US stock futures rebounded. As shown, it ended up in the lower price range.
The Nikkei index closed at 26,629.86 yen, down 1.32%, but before that recorded a decline of 2.19%, the lowest level since May 19.
Topix shares fell 1.19 percent to 1,878.45 points.
“The feeling that stock prices are getting cheaper supports the market, and bargain hunting can be seen to some extent,” say market officials at local trust banks.
However, sentiment is still weak.
In Beijing, millions of people have been tested to stop the spread of outbreaks from gatherings in 24-hour bars, and China’s vice premier said prevention and control of the novel coronavirus needs to be strengthened. rice field. Shanghai just ended a two-month lockdown.
“Re-tightening of regulations in Beijing and Shanghai has raised concerns regarding new supply chain disruptions,” said Kazuo Kamiya, strategist at Nomura Securities.
In the meantime, investors are holding two meetings with the Federal Open Market Committee (FOMC) (first session ends on Wednesday, 2).
The second time is expected to be in preparation for a 150 basis point rate hike next month.) This comes on the heels of data released on Friday that the US Consumer Price Index rose significantly.
Market officials at local securities firms say, “Just before the FOMC meeting, there is a very harsh backdrop for growth stocks.”
Wall Street turned bearish overnight. The S&P 500 is down 3.88%, down more than 20% from its recent highs. Nasdaq, which has a lot of technology stocks, fell 4.6%.
Technology stocks fell 1.95%, making it one of the worst sectors on the Nikkei Index. Healthcare stocks fell 2.18%. The real estate stock was the slowest, down 2.97%.
Financial stocks also lost their early rally due to higher bond yields and closed down 0.14%.
Among the stocks that make up the Nikkei index, 171 stocks fell, 52 stocks rose, and two stocks stabilized.
Tokyo Electron, a semiconductor manufacturing equipment maker, was down 2.84%, down 36 points from the Nikkei and the biggest decline.
Emerging investment group SoftBank fell 2.56%, down 28 points from the Nikkei.
Travel-related stocks were also hit. Airline ANA Holdings fell 3.61% and Japan Airlines fell 2.88%.
Archyde.com
