TOKYO, April 6 (Reuters) - Japan's Nikkei share average
hit more than one-week low, as investors sold exporters on the
back of yen's overnight strength, while heavyweight chip-related
stocks tracked the Nasdaq weakness.
The Nikkei index fell to as low as 27,467.59, its
lowest since March 28, before ending the morning session at
27,513.68, down 1.08%.
The broader Topix lost 0.9% to 1,965.91.
The S&P 500 dipped and the Nasdaq ended sharply lower
overnight after a growing wave of weak economic data deepened
worries that the Federal Reserve's rapid interest rate hikes
might tip the U.S. economy into a recession. Overnight, the dollar held near two-month lows after the
weak data supported the view that the Federal Reserve may not
need to raise rates much further, propping the yen up. A stronger yen tends to squeeze Japanese firms' overseas
profits.
"The yen gained overnight, which prompted investors to sell
exporters, and the chip-related shares tracked the Nasdaq
weakness," said Masahiro Ichikawa, chief market strategist at
Sumitomo Mitsui DS Asset Management.
"Japanese shares will be under pressure from a sign of
slowdown of the U.S. economy for a while. But towards the end of
the month, there may be some domestic market moving cues as
companies start reporting outlook, and the Bank of Japan will
have a policy meeting."
Chip-making equipment maker Tokyo Electron Ltd slipped 4.78% to become the worst performer on the Nikkei.
Air-conditioning maker Daikin Industries Ltd lost
3.57%, leading the losses in the machinery makers' 2.57% loss, which was the worst among the Tokyo Stock Exchange's
33 industry sub-indexes.
Game and audio-equipment maker Sony Group Corp lost
and a robot maker Keyence Corp fell 3.39%, sending the
electronic machinery makers 2.19% lower.
Computer maker Fujitsu Ltd lost 3.90%.
The utility sector gained 1.55% to become the
best performer among the sector indexes, with Chubu Electric
Power Co Ltd rising 1.92% to become the best performer
on the Nikkei.
(Reporting by Junko Fujita; Editing by Varun H K)
