RTTNews - The stock market in Japan ended in negative territory on Wednesday following Wall Street cues where the major indices ended sharply lower despite positive economic data. Weak commodity prices and concerns about the pace of recovery haunted traders who preferred to lock-in gains and move to sidelines looking for direction.
The benchmark Nikkei 225 Index ended at 10,280, representing a loss of 249.60 points, or 2.40%, while the broader Topix index of all first section stocks fell 18.96 points, or 2%, to 949.
On the economic front, the Bank of Japan stated that the monetary base in the country rose 6.1% year-over-year in August to 93.3 trillion yen. Banknotes in circulation were up 0.5% on year, while coins in circulation eased 0.2% year-over-year.. Current account balances surged 64.6% on year, including a 56.2% reserve balance. Seasonally adjusted, the monetary base climbed 3.6% to 94.19 trillion yen - up from 93.91 trillion yen in July.
Light sweet crude oil price for October delivery ended at $68.54 a barrel in electronic trading, up $0.49 from its previous close $68.05 a barrel in New York on Tuesday.
Financial stocks led the decline on concerns about the pace of recovery in the global economy. Mitsubishi UFJ Financial declined 2.52%, Mizuho Financial slumped 3.10%, Resona Holdings lost 1.26% and Sumitomo Mitsui Financial fell 2.74%.
Energy stocks also ended weaker following drop in crude oil prices in the international market on Tuesday. Nippon Oil Corp fell 2.22%, Nippon Mining Holdings lost 2.77% and Showa Shell lost 2.65%.
Retailers also ended in negative territory after Seven & I Holdings cut its earnings outlook for the full year. The stock price declined 2.69%. Among other retailers, Fast Retailing slumped 3.14%, Aeon plunged 4.52% and J Front Retailing lost 2.00%.
Trading companies also ended weaker following the strengthening of the local currency against the US dollar and weaker commodity prices. Inpex Corp., plunged 4.33%, Toyota Tsusho Corp slumped 3.96%, Mitsubishi Corp. declined 2.40%, Mitsui & Co., fell 2.40%, and Sumitomo Mitsui Corp. lost 2.74%.
Exporters and automakers ended lower following the strengthening of the local currency against the US dollar. Canon lost 2.78%. Toyota Motor fell 2.49%, Honda Motor declined 2.02%, Isuzu Motors shed 2.23% and Mitsubishi Motor slipped 2.94%.
In the U.S., stocks ended in the negative territory for the second successive day on Tuesday despite better than expected economic data related to manufacturing index, pending home sales and construction spending index, as traders, having already priced in these factors, preferred to lock in gains and move to sidelines ahead of key economic data related to jobs slated for release during the course of the week.
The Dow fell by 185.68 points or 2% to 9,311, the Nasdaq declined by 40.17 points or 2% to 1,969 and the S&P 500 fell by 22.58 points or 2.2 % to close at 998.
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