Tokyo shares close lower for fourth day

Tokyo’s benchmark Nikkei index closed lower for a fourth straight session on Wednesday after US shares dropped on inflation worries.

The Nikkei 225 lost 0.61 percent, or 178.68 points, to end at 29,106.78, while the broader Topix index slid 0.54 percent, or 10.81 points, to 2,007.96.

“There are hopes for economic recovery and a new policy” as newly elected Prime Minister Fumio Kishida unveils his cabinet, Okasan Online Securities said in a note.

“Earnings are good, but the Nikkei index lacked direction due to falls of US futures and Asian shares.”

Mizuho Securities said traders were eyeing the US Consumer Price Index due later in the day.

Tokyo trade opened lower, following falls on Wall Street, where the Dow eased 0.3 percent and the tech-rich Nasdaq index shed 0.6 percent.

The US market came under pressure as fresh data showed wholesale prices in the world’s largest economy remained high in October as it battled a wave of inflation.

Tokyo shares avoided sharp falls in reaction to the overnight drops on Wall Street, partly because the Nikkei had already been trending down for a few days, brokers said.

And investors remain hopeful that Kishida’s government will launch a fresh round of stimulus to prop up the economy, according to Okasan.

Among major shares, Sony Group gave up early gains and trended down 0.90 percent to 13,725 yen.