Tokyo shares close lower after US falls

Tokyo shares closed lower on Wednesday, extending a rout on Wall Street where fears grew over a global economic slowdown.

The Nikkei 225 index, which dipped more than two percent in the morning, ended down 1.17 percent or 313.48 points to end at 26,386.63, while the broader Topix index fell 0.94 percent, or 17.75 points, to 1,860.76, AFP reported.

The dollar stood at 127.90 yen, against 127.21 yen in New York late Tuesday.

“The Nikkei index opened lower after the three major US indices fell sharply last night,” Okasan Online Securities said. “A wide range of stocks, especially tech shares, were sold in the afternoon.”

The Tokyo market trimmed its losses as US futures and Chinese shares rose, but tech issues still tanked.

Japan is approaching a set of public holidays known as Golden Week, with traders set to take a break on Friday. Then, after operating normally on Monday, the market will close for three straight days before reopening on Friday April 6.

Industrial robot maker Fanuc dived 5.72 percent to 19,525 yen while Tokyo Electron, which makes tools to build semiconductors, lost 1.49 percent to 54,800 yen.

SoftBank Group fell 0.25 percent to 5,182 yen while Uniqlo operator Fast Retailing dipped 0.42 percent to 60,980 yen.

Automakers were lower with Nissan dropping 1.98 percent to 499.2 yen, Toyota falling 0.66 percent to 2,165.5 yen and Honda tumbling 3.17 percent to 3,291 yen.