Tokyo stocks close lower on banking concerns, China data
Tokyo stocks closed lower Wednesday on concerns over the banking sector and weak China trade data, while investors await US inflation figures for clues on Fed strategy. The benchmark Nikkei 225 index slipped 0.53 percent, or 172.96 points, to 32,204.33, while the broader Topix index trimmed 0.40 percent, or 9.16 points, to 2,282.57.
The dollar fetched 143.22 yen, against 143.40 yen seen in New York on Tuesday. Moody's downgraded 10 US regional banks and placed another six lenders on watch for a possible cut, citing the rising costs of bank deposits and a worsening outlook for credit quality.
The downgrade, as well as drops in China's exports and imports, «prompted worries over (a global) economic slowdown» and weighed on the market, senior strategist Shuji Hosoi of Daiwa Securities said in a commentary. Official data showed Tuesday that China suffered its biggest fall in exports in more than three years last month — a 14.5 percent drop — reflecting weakening international demand for Chinese products.
Imports shrank a forecast-busting 12.4 percent, a ninth straight month of contraction and further evidence that domestic demand has fallen off a cliff. Investors were increasingly taking «a wait-and-see attitude ahead of release of the US consumer price index» on Thursday, Mizuho Securities said in a note.
Among major shares in Tokyo, SoftBank Group dropped 3.13 percent to 6,802 yen after it reported a surprise net loss of more than $3 billion in the first quarter on Tuesday.Sony Group was up just 0.08 percent at 12,985 yen ahead of its first-quarter earnings report. After the closing bell, Sony Group said it has slightly upgraded its annual sales and net profit forecasts, driven by strength in its music business and
. Read more on economictimes.indiatimes.com
