Nikkei index down on higher yen and concerns of US recession

Japanese Nikkei index fell today, Wednesday, for its first loss in four days, as auto and energy stocks took a hit from the rise of the yen and fears of a US recession.

According to “Reuters”, the Nikkei index’s losses extended in the afternoon session, to close down 1.68 percent at 27,813.26 points, dropping below the level of 28,000 points for the first time this month.

The index had risen 1.82 percent during the previous three sessions, touching the highest level since March 10.

The broader Topix index fell 1.92 percent to 1983.84 points, after three days of gains, by 1.99 percent.

Investors sold shares that rose in the past days to reap profits, and shares of energy companies were among the most affected.

Meanwhile, yen extended gains reaching 131.315 against the dollar, which affected sentiment on a large scale, and dealt a blow to automakers in particular, with the decline in the value of foreign sales.

Toyota Motor shares fell 2.45 percent, Honda Motor 2.23 percent, and Mazda Motor 3.33 percent.

Overnight Tuesday, all three major US stock indices fell, as evidence of a slowing economy exacerbated fears that the Federal Reserve’s monetary tightening campaign could lead to a deep economic contraction. And new data showed that job opportunities fell to their lowest level in two years, and factory orders fell for the second month.

The share of Fast Retailing Company was the biggest loser on the Nikkei index, with a decline of 1.92 percent, to lose the index by 58 points.