Tokyo stocks end lower on inflation worries

Tokyo shares ended lower on Thursday as renewed concerns over inflation and the Chinese economy overshadowed a boost to Japanese exporters from the weakening yen. The benchmark Nikkei 225 index lost 0.92 per cent, or 250.42 points, to end at 27,006.96, while the broader Topix index fell 0.51 per cent, or 9.65 points, to 1,895.41.

The falling yen was nearing the psychologically important level of 150 against the dollar, with the greenback standing at 149.95 yen, against 149.88 yen in New York on Wednesday.

A weak yen is often seen as a positive factor for companies that sell products overseas, such as automakers.

But this was eclipsed by fresh concerns over inflation worldwide after the latest consumer price indexes both from Canada and the United Kingdom provided no relief to investors.

The figures reinforced the view among investors that inflation is deepening globally and that monetary tightening will likely continue, Toshikazu Horiuchi of IwaiCosmo Securities told AFP.