U.S. shares fell after minutes from the Federal Reserve's last policy meeting indicated that banking sector stress could tip the economy into a recession. The minutes followed inflation data that added to the likelihood of another policy rate hike when the Fed convenes next month. "The market has been too complacent on both the recession risk and inflation persistence," said Mio Kato, the founder of LightStream Research, who publishes on the SmartKarma platform.
"I am expecting earnings guidance to come out cautious, especially on tech," he added. There were 144 decliners on the Nikkei index against 72 that rose.
Aeon Co surged 2.1% to lead all gainers after the
retailer said revenue in the year through February reached an
all-time high and forecast record profit for next year.
Cosmetics maker Shiseido Co. jumped 1.48%.
Investors will be eyeing results from other major retailers on
Thursday, including Uniqlo operator Fast Retailing Co. and Muji owner Ryohin Keikaku Co. "As seen in the results of retail companies, increased
mobility of people and the recovery of inbound travel are
boosting the economy," Nomura strategist Maki Sawada said. "That
seems to be providing some support for the Nikkei."
Lunar transport start-up ispace Inc traded for the
first time, ending the morning session at 1,135 yen, more than
four times the initial public offer price.
The company, which is planning to land a probe on the moon
this month, went untraded on its debut on Tokyo's Growth market
yesterday amid a glut of buy orders.
(Reporting by Rocky Swift; Editing by Janane Venkatraman)
