Tokyo stocks close lower

TOKYO (AFP): Tokyo stocks closed lower on Wednesday as worries over prospects for the US economy and the financial sector weighed on the market.

The benchmark Nikkei 225 index ended down 0.71 percent, or 203.60 points, at 28,416.47, while the broader Topix index lost 0.89 percent, or 18.25 points, to 2,023.90.

“Concerns over the outlook of US economy… as well as reignited worries over a credit crunch triggered by a US bank’s earnings, prompted investors to sell shares across the board,” IwaiCosmo Securities said in a note. The dollar stood at 133.56 yen, against 133.73 yen in New York on Tuesday.

On Monday, regional US bank First Republic said it lost more than 40 percent of its deposits in the first quarter this year, and its shares sank nearly 50 percent by end of trade on Tuesday.

That prompted US shares to fall, which in turn weighed on the Japanese market, analysts said.

The First Republic crisis helped “reignite concerns about the banking sector”, Stephen Innes of SPI Asset Management said in a note.

Among major shares in Tokyo, Sony Group closed down 1.38 percent at 12,140 yen, Panasonic slipped 1.12 percent to 1,278.5 yen, and Olympus dipped 2.50 percent to 2,359.5 yen.

Honda ended down 0.74 percent at 3,476 yen after it said it would tie up with Taiwan Semiconductor Manufacturing as part of efforts to secure a stable semiconductor supply.

Nissan lost 1.25 percent to 475.7 yen, but Toyota closed up 0.19 percent at 1,803.5 yen.

Uniqlo operator Fast Retailing fell 0.78 percent to 31,720 yen.

Airlines ended lower, with ANA Holdings slipping 0.51 percent to 2,930 yen, and Japan Airlines losing 0.23 percent to 2,579 yen.