Nikkei falls on weak industrial data, BOJ move to cut long bond buying
Reuters|
Feb 28, 2018, 01.52 PM IST
TOKYO: Japan's Nikkei share average fell on Wednesday, snapping a three-day winning streak, pressured by losses on Wall Street and a larger-than-expected fall in Japanese industrial output.
The Bank of Japan's decision to trim purchases of super long bonds also soured sentiment by boosting the yen.
The Nikkei ended 1.4 per cent lower at 22,068.24 points.
Most sectors were in the red, with index-heavyweight stocks underperforming. Fast Retailing fell 2.5 per cent, SoftBank Group Corp shed 2.4 per cent and Fanuc Corp slid 2.0 per cent.
Data early in the day showed slowing production of cars and electronics in January tipped Japan's industrial output into its biggest tumble since a devastating earthquake in March 2011, highlighting a weakening in demand and a build up of inventory.
Confidence was further dented after the Bank of Japan trimmed the amount of super long Japanese government bonds it offered to purchase at its regular debt-buying operation.
Global investors are increasingly worried over how much longer the BOJ can maintain its massive stimulus campaign. Though a complete exit from these policies is believed to be a long way off, economists worry that the central bank won't be able to start scaling back its asset purchases more actively without disrupting financial markets.
Exporters were also battered, with Honda Motor falling 2.2 per cent and TDK Corp dropping 1.9 per cent.
As oil prices extended declines into a second day, the mining sector was hit. Inpex Corp tumbled 4.9 per cent and Japan Petroleum Exploration Co slumped 3.9 per cent.
The broader Topix dropped 1.2 per cent to 1,768.24.
The Bank of Japan's decision to trim purchases of super long bonds also soured sentiment by boosting the yen.
The Nikkei ended 1.4 per cent lower at 22,068.24 points.
Most sectors were in the red, with index-heavyweight stocks underperforming. Fast Retailing fell 2.5 per cent, SoftBank Group Corp shed 2.4 per cent and Fanuc Corp slid 2.0 per cent.
Data early in the day showed slowing production of cars and electronics in January tipped Japan's industrial output into its biggest tumble since a devastating earthquake in March 2011, highlighting a weakening in demand and a build up of inventory.
Confidence was further dented after the Bank of Japan trimmed the amount of super long Japanese government bonds it offered to purchase at its regular debt-buying operation.
Global investors are increasingly worried over how much longer the BOJ can maintain its massive stimulus campaign. Though a complete exit from these policies is believed to be a long way off, economists worry that the central bank won't be able to start scaling back its asset purchases more actively without disrupting financial markets.
Exporters were also battered, with Honda Motor falling 2.2 per cent and TDK Corp dropping 1.9 per cent.
As oil prices extended declines into a second day, the mining sector was hit. Inpex Corp tumbled 4.9 per cent and Japan Petroleum Exploration Co slumped 3.9 per cent.
The broader Topix dropped 1.2 per cent to 1,768.24.
