Japan shares track Wall Street lower after Fed's remarks

  • Reuters
  • Stock Market News
Japan shares track Wall Street lower after Fed's remarks
Credit: © Reuters.

TOKYO, March 5 (Reuters) - Japanese shares fell for a second straight session on Friday as overnight declines on Wall Street prompted domestic investors to sell index heavyweights and high-flying technology shares.

The Nikkei share average .N225 lost 2.14% to 28,311.11 by 0200 GMT, while the broader Topix .TOPX was down 1.13% to 1,863.45.

U.S. equities ended sharply lower on Thursday, leaving the Nasdaq down nearly 10% from its February record high, after remarks from Federal Reserve Chair Jerome Powell disappointed investors worried about rising longer-term U.S. bond yields. .N Treasury yields jumped during U.S. trading hours after Powell's speech, sending the 10-year yield to top 1.5%.

"The move of the U.S. long-term bond yields is now the centre of the attention for stock investors," said Yoshihiro Takeshige, general manager at investment management department of Asahi Life Asset Management.

"If the move of yields will become out of control, Japan's market could be dragged lower led by declines in U.S. technology shares."

Heavyweights Fast Retailing 9983.T , the operator of Uniqlo clothing stores, fell 5.08%, weighing on the index the most. Chip manufacturing equipment maker Tokyo Electron 8035.T and SoftBank Group 9984.T fell 4.63% and 2.28%, each.

Other chip-related shares, which led this year's rally, retreated, with Advantest 6857.T falling 4.03% and Fanuc 6954.T losing 1.61%.

The stocks that gained the most among the top 30 core Topix names were Kao 4452.T , which rose 1.69%, followed by Seven & i Holdings 3382.T , edging up 0.6%.

The underperformers among the Topix 30 were Recruit Holdings Co 6098.T , down 6.57%, followed by SoftBank Group.

There were 67 advancers on the Nikkei index against 155 decliners.

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