2023-09-27 02:53:58
Japan’s Nikkei stock average hit a one-month low on Wednesday, tracking Wall Street’s losses on interest rates, and as investors sold value stocks after recent buying.
The Nikkei was down 0.4% at 32,174.84, at 0207 GMT. Earlier in the session, the benchmark index fell 1.1% to 31,960.32, its lowest level since August 28.
The broader Topix was down 0.33% at 2,364.17.
“The Japanese market followed Wall Street, which fell on concerns over rising U.S. Treasury yields and the possibility of a partial U.S. government shutdown,” said Shoichi Arisawa, general director of the Japan Securities Research Department. investments at IwaiCosmo Securities.
Wall Street’s major indexes fell more than 1% overnight as yields on 10-year Treasury notes hit their highest level in several years as investors remained concerned about the prospect of a long period of high interest rates and the economic consequences that would result from it.
In recent sessions, investors have been buying value stocks to secure dividend payment rights, which expire after Wednesday.
“This buying frenzy appears to have stopped as investors began to worry about a sell-off after securing dividend rights,” Mr. Arisawa said.
The Topix index of value stocks fell 0.43%, compared with a 0.17% decline for the Topix index of growth stocks.
For the month, the value stock index gained 4.7%, outpacing the growth stock index’s 2.3% decline.
Among individual stocks, Fast Retailing, owner of the Uniqlo brand, fell 1.75%, leading the Nikkei into its biggest drop. Chip test equipment maker Advantest slipped 0.7%.
Air conditioner maker Daikin Industries lost 1.31%.
Drugmaker Daiichi Sankyo jumped 2.6%, becoming the Nikkei’s biggest backer and the index’s biggest gainer. (Reporting by Junko Fujita; Editing by Subhranshu Sahu)
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