The Japanese stock market ended the session slightly lower after erasing earlier gains on Wednesday, March 9, 2022, extending losses for the fourth straight session, on the heels of Wall Street’s negative advance overnight sentiment proving difficult to cheer up amid lingering concerns over the situation in Ukraine.
Strong investor appetite for undervalued stocks after the Nikkei lost more than 6% to a 16-month low over the past three trading days initially boosted the market.
At the closing bell, the 225-issue Nikkei Stock Average fell 73.42 points, or 0.3%, to 24,717.53, its lowest since November 2020. The broader Topix index of all issues of the first section at the Tokyo Stock Exchange fell 0.97 points, or 0.06%, to 1,758.89.
A total of 21 out of 33 TSE emissions declined, with the worst performing sectors being electric power and gas, shipping, precision instruments, pharmaceuticals, and warehousing and port transportation services, while that top-performing shows included Rubber Products, Airline and Banking.
Market participants struggled with selling pressure amid concerns about inflationary risks and a slowing global economy following soaring oil prices as President Joe Biden officially announced a US ban on importing Russian oil, liquefied natural gas and coal in response to Russia. unprovoked invasion of Ukraine.
Britain said the same day it would phase out Russian oil imports by the end of the year, while the European Union unveiled a plan to eventually become independent of Russian fossil fuels.
Shares of blue chip Nikkei were mostly down, with recruitment agency Recruit Holdings falling 4.46%, while soy sauce maker Kikkoman lost 6.67%.
Kikkoman plunged 6.7% to 7,840 yen on concerns that soaring soybean and wheat prices amid the Ukraine crisis could increase the soy sauce maker’s production costs.
Tied export shares were mostly higher as the yen weakened slightly overnight against the US dollar.
Honda Motor rose 0.8% to 3,069 yen, Mitsubishi Motors rose 1.2% to 257 yen and Mazda Motor gained 1.7% to 727 yen.
ECONOMIC NEWS: Japan’s GDP grows 4.6% year on year in the fourth quarter – Japan’s gross domestic product grew 4.6% year on year in the fourth quarter of 2021, the Cabinet Office said on Wednesday after the contraction revised down from 2.8% over the previous three months. On a seasonally adjusted quarterly basis, GDP rose just 1.1% after shrinking 0.7% in the previous three months. Capital expenditure rose 0.3% in the quarter, after contracting 2.4% in the third quarter. External demand increased by 0.2% quarter on quarter, compared to 0.1% in the third quarter.
CURRENCY NEWS: The Japanese yen was trading at 115.83 to the dollar, weaker than levels below 115.2 seen against the greenback earlier this week.
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