Japan’s Nikkei ends lower as tech stocks follow Nasdaq weakness

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TOKYO — The Japanese Nikkei ended lower on Monday as tech heavyweight stocks trailed the Nasdaq lower, hit by the U.S. Federal Reserve’s aggressive move to fight inflation.

The Nikkei stock average fell 0.61% to close at 26,821.52, after trading higher earlier in the session. The broader Topix slipped 0.38% to 1,889.64, also briefly turning positive.

The Nasdaq fell 1.34% on Friday as the benchmark 10-year U.S. Treasury bond surged amid an increasingly hawkish policy outlook from the Fed.

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“Foreign investors sold off major Japanese tech stocks after the Nasdaq lost more than 1% on Friday, pushing the Japanese market lower,” said Shigetoshi Kamada, managing director of Tachibana Securities’ research department.

“But losses were limited as domestic investors bought stocks on optimism that profits for Japanese tech companies could rise.”

Industry leader Yaskawa Electric surprised analysts by posting record annual operating profit. However, the industrial robot maker fell 3.08%.

Tech investor SoftBank Group lost 2.69%, while medical services platform M3 fell 5.34%.

Air conditioner maker Daikin Industries fell 2.83% and game maker Sony Group 3.94%.

On the positive side, utilities rose 3.27% and was the best performer of the Tokyo Stock Exchange’s 33 sector sub-indices.

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Japanese Prime Minister Fumio Kishida on Friday unveiled a series of measures against Russia, including a ban on coal, raising the prospect of the country shifting towards more renewable and nuclear energy, market participants said. .

Tokyo Electric Power Company Holdings and Chubu Electric Power were the biggest winners in the Nikkei, jumping 16.23% and 7.4% respectively.

Renewable energy company Renova advanced 3.05%.

There were 129 advances on the Nikkei index versus 92 declines.

The volume of shares traded on the main board of the Tokyo Stock Exchange was 1.19 billion, compared to an average of 1.37 billion over the past 30 days.

(Reporting by Junko Fujita; Editing by Uttaresh.V and Rashmi Aich)

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