Tokyo stocks down for 3rd day on fears of global slowdown

Jiji Press

17:21 JST, December 19, 2022

TOKYO (Jiji Press) — Tokyo stocks fell for the third straight session Monday amid renewed worries about a global economic slowdown.

The Nikkei average of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section gave up 289.48 points, or 1.05%, to finish at 27,237.64, after falling 524.58 points Friday.

The broader TOPIX index ended 14.80 points, or 0.76%, lower at 1,935.41, following a 23.69-point decline the previous trading day.

The Tokyo market traced the drops of three key U.S. stock indexes Friday as market sentiment was dampened by concerns about economic deceleration in the United States and elsewhere.

“Worries about high interest rates chilling the U.S. economy were stoked by hawkish comments Friday by John Williams, president of the Federal Reserve Bank of New York, pushing down foreign demand-related stocks on the Tokyo market,” said Maki Sawada, strategist at Nomura Securities Co.

Fears of a slowdown in China caused by the rise in COVID-19 cases in the country also darkened sentiment.

But the market’s downside was limited after the morning burst of selling, underpinned by the strength of U.S. stock futures in off-hours trading.

Some market players bought financial issues on hopes that the Bank of Japan may decide to change its massive monetary easing policy at its two-day policy-setting meeting from Monday, brokers said.