Nikkei slips after Wall St retreats as data signals slow recovery

  • Reuters
  • Stock Market News
Nikkei slips after Wall St retreats as data signals slow recovery
Credit: © Reuters.

TOKYO, Sept 24 (Reuters) - Japanese shares slipped on Thursday following hefty overnight losses on Wall Street after U.S. data reaffirmed concerns of a slow global economic recovery, though investor hopes of chunky dividends by next week helped limit losses.

Investors sought to limit exposures to downside risks as the global economic outlook darkened on rising COVID-19 infections in Europe as well as on uncertainties over U.S. presidential elections.

Japan's Nikkei share average .N225 slipped 0.57% to 23,214.49, falling below a key support from its 25-day average at 23,222.

The broader Topix .TOPX lost 0.53% to 1,635.46, led by cyclicals such as steelmakers .ISTEL.T and carmakers .ITEQP.T .

Steelmakers JFE Holdings 5411.T and Kobe Steel 5406.T fell 4.7% and 3.6%, respectively. Among carmakers, Honda 7267.T lost 2.9% while truck maker Hino Motors 7205.T shed 2.4%.

Elsewhere, Sumitomo Mitsui Trust 8309.T dropped 2.8%, hit by concerns about reputational damages after the Japanese company made errors in vote-counting of shareholders' meetings it administers. caution was palpable with so-called quality stocks, those with steadier earnings outlook, outperforming the overall market, said Yuya Fukue, trader at Rheos Capital Works.

Among the quality stocks, endoscope maker Olympus 7733.T gained 2.6% while optical products maker Hoya Corp 7741.T rose 1.7% and Sysmex 6869.T , a medical equipment firm, added 1.6%.

Still, Nikkei's losses were smaller than the 2.37% drop in U.S. S&P500 .SPX , partly due to expectations of big reinvestment flows from dividend next week.

"We have 800 billion yen ($7.59 billion) of reinvestment expected. That is big," said Fukue at Rheos.

Shares of start-up companies were another bright spot, with their Mothers Index .MTHR hitting a 2-1/2-year high.

Internet service firm Toyokumo 4058.T , listed in the Mothers market on Thursday, was untraded with a glut of "buy" orders.

Toyokumo's strong IPO debut lifted shares of software firm Cybozu 4776.T , its parent company before a management buyout and its second-biggest shareholder.

($1 = 105.41 yen)

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or


Related Articles