SINGAPORE, Feb 22 (Reuters) - Japan's Nikkei share average slid to a one-month low on Wednesday under broad selling pressure piled on by rising global political tensions and worries that U.S. rate hikes will end up slowing down the world's economy.
The Nikkei was down 1.3% by the market lunch break in Tokyo and will mark its worst performance in about a month if losses hold. There were just 12 gainers in the index against 211 decliners. The broader Topix fell 1.1%.
Bellwether stocks such as job search provider Recruit Holdings and Uniqlo owner Fast Retailing were among the biggest drags on the market.
Fast Retailing dropped nearly 2%, as weak outlooks from U.S. retailers Home Depot and Walmart dented confidence. Recruit fell 3% to a 2-1/2-year low.
"It seems to be driven by the declines on Wall Street, stoked by both yield rises but also geopolitical fears," said Charu Chanana, a strategist with Saxo Markets in Singapore.
Market participants, she added, were also nervous ahead of Japanese inflation data due on Friday and central bank governor nominee Kazuo Ueda's appearance before parliament on Monday.
The yen was also under pressure, as was the Japanese bond market following an unexpected rebound in U.S. business activity that raised expectations that the Federal Reserve will further raise interest rates this year.
Meanwhile, a survey on Tuesday showed Japan's manufacturing activity contracted at its fastest pace in 30 months in February and on Wednesday a Reuters poll showed manufacturers' mood was gloomy and the service sector sentiment slid for a second month.
Ratcheting up geopolitical tensions, Russian President Vladimir Putin suspended Russia's last major nuclear arms treaty with the United States.
A broker downgrade weighed on insurer T&D Holdings, which dropped 5.5%. Pharmaceutical firm Daiichi Sankyo led gainers with a 3.4% rise. (Reporting by Tom Westbrook in Singapore Editing by Vinay Dwivedi)
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February 22, 2023 at 10:00AM
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Nikkei drops to 1-month low on political tensions, rate-hike worries - Yahoo Finance
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