The Japanese stock market is sharply lower on Monday, giving up the gains in the previous session, with the Nikkei 225 plunging 800 points to stay just above the 27,000 mark, following the negative cues from Wall Street on Friday, with technology stocks and index heavyweights tumbling as bigger than expected surge in U.S. inflation in May renewed concerns about growth and interest rates outlook.
The benchmark Nikkei 225 Index is down 793.34 points or 2.85 percent at 27,030.95, after hitting a low of 27,008.49 earlier. Japanese shares ended sharply lower on Friday.
Market heavyweight SoftBank Group is losing almost 5 percent and Uniqlo operator Fast Retailing is declining almost 2 percent. Among automakers, Honda and Toyota are losing more than 3 percent each.
In the tech space, Advantest is losing more than 4 percent, while Tokyo Electron and Screen Holdings are declining almost 4 percent each. In the banking sector, Sumitomo Mitsui Financial is losing more than 1 percent, Mizuho Financial is down almost 1 percent and Mitsubishi UFJ Financial is declining almost 2 percent.
The major exporters are lower, with Panasonic losing more than 3 percent, Mitsubishi Electric down more than 2 percent, Sony slipping almost 4 percent and Canon declining more than 1 percent.
Among the other major losers, Omron and Kubota are sliding almost 6 percent each, while M3 and Denso are losing more than 5 percent each. CyberAgent, Recruit Holdings, Yamaha, Daikin Industries and Ebara are slipping almost 5 percent each, while Nippon Sheet Glass, Fujitsu, TDK and Shin-Etsu Chemical are down more than 4 percent each.
Conversely, Kansai Electric Power is gaining more than 3 percent.
In the currency market, the U.S. dollar is trading in the higher 134 yen-range on Monday.
On Wall Street, stocks moved sharply lower during trading on Friday with traders reacting negatively to a highly anticipated report on consumer price inflation. The steep drop on the day extended the sell-off seen over the course of Thursday’s session.
The major averages finished the day just off their lows of the session. The Dow slumped 880.00 points or 2.7 percent to 31,392.79, the Nasdaq dove 414.20 points or 3.5 percent to 11,340.02 and the S&P 500 tumbled 116.96 points or 2.9 percent to 3,900.86.
The major European markets also showed significant moves to the downside on the day. While the German DAX Index plunged by 3.1 percent, the French CAC 40 Index dove by 2.7 percent and the U.K.’s FTSE 100 Index tumbled by 2.1 percent.
Crude oil prices fell on Friday as the dollar surged higher after data showing a steep acceleration in U.S. inflation raised fears of more aggressive rate hikes by the Federal Reserve. West Texas Intermediate Crude oil futures for July ended lower by $0.84 or 0.7 percent at $120.67 a barrel.
Market Analysis
Japanese Market Sharply Lower
2022-06-13 02:29:45
