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Japan Market falls on slowdown worries

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Capital Market
Last Updated : Sep 26 2022 | 6:04 PM IST
Japanese share market finished session deeply in negative territory on Monday, 26 September 2022, as investors disheartened by global selloff linked to growing fears of possible global recession after central banks ramped up interest rates to combat inflation.

At closing bell, the 225-issue Nikkei Stock Average index stumbled 722.28 points, or 2.66%, to 26431.55. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 51.84 points, or 271%, to 1,864.28. Japanese financial markets were closed Friday for a national holiday.

The market reflected a broader weakness, as investors continued to reposition themselves amid fears of an economic slowdown, after the Federal Reserve's decision last Wednesday to again lift borrowing costs by 75 basis points was followed by a warning that more big rises were in the pipeline. There were similar moves by central banks in other countries, including Britain, Sweden, Norway, Switzerland, the Philippines and Indonesia - all pointing to a dark outlook for markets.

Tech stocks led losses, with Tokyo Electron and SoftBank Corp falling 4-5%. Mazda Motor Corp lost 5.6% on reports that the automaker is discussing ending production in Russia.

ECONOMIC NEWS: The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) slipped to a seasonally adjusted 51.0 in September from the prior month's final of 51.5. The headline figure marked the slowest expansion since January 2021, although it stayed above the 50-mark that separates contraction from expansion.

CURRENCY NEWS: The dollar pared part of its early gains to move below 144 yen in late Tokyo trading on Monday. At 5 p.m., the dollar stood at 143.82-83 yen, down from 145.77-77 yen at the same time Thursday.

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First Published: Sep 26 2022 | 3:58 PM IST

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