Japanese stocks closed lower affected by contraction in factory activity

Japanese stock markets ended lower on Tuesday, as investor confidence was shaken after a survey of companies showed that the country’s manufacturing activity contracted at the fastest pace in 30 months in February. The Nikkei index fell 0.21 percent to close at 27,473.10 points, and consumer goods stocks led the wave of losses, as weak factory data indicated that the third largest economy in the world may still be affected by low demand and cost pressures. The broader Topix index fell 0.11 percent to 1,997.46 points. Among the stocks that fell the most on the Nikkei index today, Tuesday, J. Front Retailing for department stores, which fell 2.9 percent, and Takashimaya, which fell 2.6 percent. The biggest gainers included tire maker Yokohama Rubber, up 5.4 percent, and Nippon Paper Industries, up 4.90 percent. Data released earlier on Tuesday revealed that manufacturing activity in Japan shrank for the fourth month in a row. While the services sector activity expanded for the sixth month following the easing of anti-COVID-19 restrictions.