TOKYO — Tokyo shares closed 0.78% lower on Tuesday following losses on Wall Street stoked by political and economic uncertainty in Europe and softer Chinese manufacturing figures.
The Nikkei 225 index at the Tokyo Stock Exchange fell 74.13 points to close at 9,468.04. The broader Topix index of all first-section issues slipped 0.69%, or 5.60 points, to 803.94.
U.S. and European markets fell as Chinese factory output contracted for the sixth straight month, and in the 17-nation eurozone private-sector activity shrank the most in five months.
The Dutch government collapsed Monday after a breakdown on budget talks, a day after French President Nicolas Sarkozy lost a first-round presidential vote to Socialist Francois Hollande, both weighing on markets.
But weakness in the Japanese market would likely be limited ahead of central bank policy meetings in Washington and Tokyo and next week’s public holiday in Japan, said Tatsunori Kawai, chief strategist at kabu.com Securities.
“While many investors are clearly sidelined ahead of both U.S. Fed and BOJ (Bank of Japan) policy announcements (this week), the upcoming Golden Week holiday next week is also going to hold participation levels down for the time being,” he said.
Investors were also looking to Japanese corporate earnings, but markets had largely priced in concerns of soft profits, said Mattia Ciancaleoni, director of equity sales at Citigroup Global Markets Japan.
“Even if companies’ earnings guidance come in weaker-than-expected, markets could remain firm considering many players have hedged their positions with downside protection,” she told Dow Jones Newswires.
source: japantoday.com
