Japan’s Nikkei closes at its lowest level in two weeks

TOKYO (Reuters) – Japan’s Nikkei index closed at a two-week low on Wednesday, tracking Wall Street’s overnight decline on concerns about a global economic slowdown and the impact of the COVID-19 shutdown in China on domestic corporate results. The Nikkei index fell by 1.17 percent to close at 26,386.63 points, its lowest level since April 12. The broader Topix index lost 0.94 percent to close at 1860.76 points. Wall Street tumbled overnight, with the Nasdaq closing at its lowest level since December 2020, as investors worried about slowing global growth and the Federal Reserve’s moves on monetary policy. “Before the peak earnings season in Japan, the outlook for companies has become more uncertain due to the impact of China’s shutdown and rising energy costs,” said Shogo Maekawa, global market analyst at JPMorgan Asset Management. Investors are concerned about economic growth in China, as Beijing races to stamp out an emerging COVID-19 outbreak in the capital and avoid the same month-long shutdown imposed in Shanghai. Fanuc fell 5.72 percent, the biggest loser on the Nikkei index, after the robot maker’s annual operating profit missed expectations. Kikkoman shares fell 12.63 percent after a report that the soy sauce maker did not disclose expectations due to the increase in costs. And chipmaker Tokyo Electron lost 1.49 percent.

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