Toyota Motor Corp , Nissan Motor Co Ltd and Honda Motor Co Ltd all sank around 2%. Overnight, all three major U.S. stock indexes declined, as evidence of a cooling economy exacerbated worries that the Federal Reserve's rate tightening campaign may trigger a deep downturn. New data showed job openings dropped to the lowest in two years, and factory orders fell for a second month. "Rising concern over the U.S. economy and the decline in U.S. stocks are having a big impact," said Maki Sawada, a strategist at Nomura Securities, noting that economically-sensitive sectors such as energy and steel were being particularly hard hit. "Given the Nikkei's rise in recent sessions, some profit taking is natural," she said. "Around the psychological 28,000 level though, bargain hunting is likely to emerge, limiting downside." Fast Retailing was the worst-performing stock on the Nikkei, dropping 1.8% and erasing 55 index points from the index. Oil and coal producers , and iron and steel each lost 3.1%, making them the worst-performing industry sectors on the Tokyo Stock Exchange. Shipping alone rose, climbing 1.7% and continuing its strong rebound from the two-month low hit on Monday. Panasonic Holdings Corp added 2.67%, and was at one point up as much as 4.24%, following a media report that it was in talks with Stellantis and BMW over new electric-vehicle battery plants. (Reporting by Kevin Buckland; Editing by Varun H K)
By Kevin Buckland
TOKYO, April 5 (Reuters) - Japan's Nikkei share average
fell sharply on Wednesday, threatening to end a three-day
winning streak, as a stronger yen and fears of a U.S. recession
hit auto and energy stocks.
The Nikkei fell 1.3% to 27,917.89 as of the midday
break, slipping below the psychological 28,000 mark for the
first time this month.
The broader Topix tumbled 1.5% to 1,991.67.
Shares that had rallied in recent days were sold by
investors looking to lock in profits, with energy stocks among the worst-hit.
The strengthening yen also weighed on sentiment
broadly, and slapped down automakers in particular, as it cut
the value of overseas sales.
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