Tokyo stocks close lower on inflation worries

• The Nikkei index fell 0.16 percent, or 44.01 points, to 27,413.88.
• The Topix index dropped 0.63% to 1,926.39.
• The yen’s depreciation against the dollar prompted purchases of export-oriented shares.

Tokyo stocks finished lower on Thursday as Wall Street drops weighed on the market, with investors focusing on inflation ahead of US jobs data due later this week.

The Nikkei 225 index fell 0.16 percent, or 44.01 points, to 27,413.88, while the Topix index fell 0.63 %, or up to 12.5 points, to 1,926.39.

“US falls weighed on the market with fears of US rate hikes, but the yen’s depreciation against the dollar prompted purchases of export-oriented shares, providing some support,” said senior strategist Ichiro Asai of Daiwa Securities.

Read More: Tokyo shares end up after surges on Wall Street

The dollar stood at 130.04 yen, against 130.15 yen in New York and 129.25 yen in Tokyo on Wednesday.

Overnight, a strong US ISM manufacturing index “prompted fears that the pace of rate hikes may accelerate”, Asai said.

Looking ahead, investors are awaiting US nonfarm payroll data due on Friday for clues on US monetary policy, analysts said.

Nintendo was down 1.63 percent to 57,470 yen, Mitsubishi UFJ Financial Group was down 0.63 percent to 740.9 yen, and Toyota was down 0.20 percent to 2,193 yen.

Fast Retailing, the operator of Uniqlo casual garments, climbed 2.50 percent to 63,150 yen, while Tokyo Electron, a chip-making equipment maker, increased 0.36 percent to 58,560 yen.

Previous Tokyo Stocks Were

Tokyo stocks closed higher on Wednesday, with investors buying exporter shareholdings as the yen fell.

The Nikkei 225 index rose 0.65 percent, or 178.09 points, to 27,457.89, while the Topix index gained 1.36 %, or 25.97 points, to 1,938.64.

Read More: Tokyo stocks close higher