Japan’s Nikkei index ended a five-session winning streak on Friday, tracking Wall Street’s overnight decline as investors awaited key US inflation data that will guide the Federal Reserve’s monetary policy tightening path.
The Nikkei index fell 1.49 percent to 27,824.29 points, below the key psychological level of 28,000, and retreated from an almost five-month high of 28,389.75 points hit Thursday. But the main index rose 0.23 percent this week, with gains for the fourth consecutive week.
The broader Topix index fell 1.32 percent to 1,943.09 points, but rose 0.51 percent during the week. The Nasdaq index fell 2.74 percent, and the Standard & Poor’s 500 index fell 2.38 percent. The market is anticipating strong consumer price data for May, which will support the Fed’s tightening of monetary policy even with the risk of economic growth being stifled.
Consumer prices
The owner of a local securities firm said Japanese investors are worried that consumer price data will push US stocks lower and that they won’t be able to do anything until markets open in Tokyo on Monday.
Shares that are expected to grow at a much higher rate than the market’s growth rate, including technology companies, fell as the Topix index of growth companies fell 1.73 percent.
Chip testing equipment maker Advantest fell 4.2 percent, and chip giant Tokyo Electron fell 3.22 percent.
Shares of Fast Retailer, operator of clothing chain Uniqlo, and technology investment firm SoftBank Group fell 0.93 percent and 2.01 percent, respectively.
All 33 industrial sub-indices fell on the Tokyo Stock Exchange, as the machinery sector index lost 2.14 percent, becoming the worst performing sector. Of the 225 stocks listed on the Nikkei, 189 fell and 34 rose.
(Archyde.com)
