Japan’s Nikkei index closed just above its lowest level in two-and-a-half months, Thursday, as concerns about a stalled economic recovery in China and prospects for a US interest rate hike affected investor sentiment in Asia.
The Nikkei index fell nearly 1.5 percent to 31,309.68 points, the lowest level since early June, before paring some losses to end the session down 0.44 percent at 31,626.00 points.
The broader Topix index fell 0.34 percent to 2,253.06 points, after earlier touching a one-month low of 2,227.62 points.
“Investors were only reacting to negative market signals … rising global yields and persistent concerns about the Chinese economy,” Takehiko Masuzawa, head of trading at Philip Securities Japan, told Reuters.
The US Treasury’s benchmark yield for 10 years reached its highest level since October at 4.3120 percent, Thursday, amid expectations that interest rates will remain high for a longer period after a series of data confirmed the strength of the US economy.
Minutes of the Federal Reserve’s July meeting released Wednesday also showed that officials are divided on the need to continue raising interest rates.
That pushed the yen to a nine-month low of 146.565 per dollar.
Fast Retailing, owner of the Uniqlo brand, lost 0.16 percent.
SoftBank Group shares ended the day slightly higher, while healthcare equipment maker Terumu closed 2.24 percent lower. Tourism-related stocks fell even after the data indicated a strong recovery in tourism in Japan.
And official data showed, on Wednesday, that the number of visitors to Japan in July rose to its highest level since the pandemic, as the weak yen helped boost tourism and contribute to increasing growth in the third largest economy in the world.
2023-08-17 08:03:56
#Japans #Nikkei #falls #affected #concerns #recovery #Chinas #economy
