(RTTNews) – Japan’s stock market is significantly lower on Friday, extending losses from the previous two sessions, with the benchmark Nikkei 225 remaining above the 27,600 level, as markets follow broadly negative signals from Wall Street overnight, with losses across most sectors partially offset by gains in financials.
The benchmark Nikkei 225 lost 213.56 points or 0.77% to 27,607.87, after hitting a low of 27,399.48 earlier. Japanese stocks closed significantly lower on Thursday.
The SoftBank group, heavyweight in the market, lost nearly 1% and the operator Uniqlo Fast Retailing lost nearly 2%. Among automakers, Honda is down almost 2% and Toyota is down almost 1%.
In technology, Advantest is down almost 3%, Screen Holdings is down almost 2% and Tokyo Electron is down 2.5%.
In the banking sector, Mizuho Financial and Sumitomo Mitsui Financial gained 0.2% each, while Mitsubishi UFJ Financial gained more than 1%.
Among the main exporters, Sony, Panasonic and Canon fell by more than 1% each, while Mitsubishi Electric lost nearly 1%.
Among the other big losers, Nippon Yusen KK plunged more than 7% and Mitsui OSK Lines slipped nearly 7%, while Citizen Watch and Kawasaki Kisen Kaisha lost nearly 6% each. Shionogi & Co. and Mitsui E&S Holdings fell more than 4% each, while Nippon Express lost nearly 4%. Dentsu Group and Idemitsu Kosan are down more than 3%. Yaskawa Electric and Kobe Steel are down nearly 3% each.
Conversely, Konami Holdings is up nearly 5% and JGC Holdings is adding nearly 3%, Nintendo and DeNA are up over 2% each.
In economic news, Japan’s large manufacturing industry weakened in the first quarter of 2022, the Bank of Japan’s quarterly Tankan Survey of business sentiment showed on Friday with a diffusion index of +14. This beat expectations for a reading of +12 and was down from +18 three months ago. The outlook came in at +9, missing expectations of +10 and down from +13 in the prior quarter. Major capital spending across all sectors is now up 2.2%, missing forecasts for a 5.0% gain and down from 9.3% in the previous three months. The large non-manufacturing index came in at +9, beating forecasts of +5 and unchanged from the previous month. The outlook was +7, missing the +8 forecast, which would have been unchanged.
In the currency market, the US dollar is trading in the lower range of 122 yen on Friday.
On Wall Street, stocks saw moderate weakness for much of Thursday’s trading session before accelerating lower at the close. The major averages all fell sharply, extending the pullback seen in the previous session.
Major averages ended the session at their worst levels of the day. The Dow Jones plunged 550.46 points or 1.6% to 34,678.35, the Nasdaq fell 221.76 points or 1.5% to 14,220.52 and the S&P 500 fell 72.04 points or 1.6% at 4,530.41.
Major European markets also traded lower on the day. While Britain’s FTSE 100 index fell 0.8%, France’s CAC 40 index and Germany’s DAX index fell 1.2% and 1.3%, respectively.
Crude oil prices fell on Thursday after US President Joe Biden authorized the release of 1 million barrels of oil per day from the country’s strategic petroleum reserve for the next six months. West Texas International crude oil futures for May ended down $7.54 or 7% at $100.28 a barrel, the lowest close since March 16.
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