TOKYO, April 6 (Reuters) - Japan's Nikkei share average
ended at a two-week low on Thursday, led by a sell-off of
exporters on the back of yen's overnight strength, while
heavyweight technology stocks tracked the Nasdaq's weakness.
The Nikkei index fell 1.22% to close at 27,472.63,
its lowest since March 24. The broader Topix lost 1.14%
to 1,961.28.
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 is a blow for exporter shares as it squeezes
the value of overseas profits in yen terms when firms repatriate
them to Japan.
"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 slipped
4.53%
Air-conditioning maker Daikin Industries Ltd lost
4.30%, leading the losses in the machinery makers' 3.11% loss, which was the worst among the Tokyo Stock Exchange's
33 industry sub-indexes.
Automaker Mazda Motor fell 4.96% to become the
worst performer on the Nikkei.
Game and audio-equipment maker Sony Group lost
2.16% and a robot maker Keyence Corp slipped 4.13%.
The utility sector gained 1.04% to become the
best performer among the sector indexes, with Tokyo Electric
Power Holdings rising 2.27% to become the best
performer on the Nikkei.
(Reporting by Junko Fujita; Editing by Varun H K)
