Shipping alone rose, climbing 1.13% and continuing its strong rebound from the two-month low hit on Monday. (Reporting by Kevin Buckland; Editing by Varun H K and Uttaresh Venkateshwaran)
By Kevin Buckland
TOKYO, April 5 (Reuters) - Japan's Nikkei share average
tumbled on Wednesday to its first loss in four days as a
stronger yen and fears of a U.S. recession hit auto and energy
stocks.
The Nikkei extended declines in the afternoon
session to end down 1.68% at 27,813.26, plunging below the
psychological 28,000 mark for the first time this month.
It had rallied 1.82% over the previous three sessions to
touch the highest since March 10.
The broader Topix slid 1.92% to 1,983.84, following
a three-day gain of 1.99%.
Shares that had rallied in recent days were sold by
investors looking to lock in profits, with energy stocks among the worst-hit.
The yen extended its rally to as strong as 131.315
per dollar, weighing on sentiment broadly, and slapping down
automakers in particular, as it cut the value of overseas sales.
Toyota Motor Corp dropped 2.45%, Honda Motor Co Ltd sank 2.23% and Mazda Motor tumbled 3.33%.
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."
Fast Retailing was the biggest drag on the Nikkei,
dropping 1.92% and erasing 58 index points from the index.
Oil and coal producers lost 3.11% and iron and
steel sank 3.16%, making them the worst-performing
industry sectors on the Tokyo Stock Exchange.
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