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Japanese shares fall on weak Wall Street finish, BOJ's absence

05/11/2021 22:52
Japanese shares fall on weak Wall Street finish, BOJ's absence

- Japanese shares fell on Wednesday, following a weak finish on Wall Street and as investors were concerned by the Bank of Japan's absence despite a sharp drop in the previous session.

The Nikkei share average .N225 fell 0.83% to 28,366.44 by 0204 GMT, after shedding more than 3% on Tuesday. The broader Topix .TOPX lost 1.07% to 1,885.46.

Overnight, Wall Street ended lower amid speculations that surging commodity prices and growing inflationary pressure could lead to earlier-than-expected rate hikes. .N

"Today's market is dragged down by the Dow's decline," said Yoshihiro Takeshige, general manager at investment management department of Asahi Life Asset Management.

"The Bank of Japan seems to have become less active in supporting the market, which made investors cautious about making bids."

The Bank of Japan, which typically buys stocks in exchange-traded funds (ETFs) in bulk when markets are falling, did not step in on Tuesday, when both the Nikkei and Topix marked their biggest daily drop since Feb. 26.

SoftBank Group 9984.T dragged the Nikkei lower by losing 2.9% despite a local media report that the tech start-up investor was set to post record net profit later in the day. nFWN2MY19W

Nissan Motor 7201.T tumbled 11.87% after the automaker flagged a weaker-than-expected guidance for the current fiscal year. nL1N2MZ02G

Toyota Motor 7203.T, which is slated to issue its outlook later on Wednesday, edged down 0.55%.

The largest percentage gainers in the index were Nichirei 2871.T, up 5.1%, followed by Yamaha 7951.T, gaining 5.08%, and Sharp Corp 6753.T, up 5.05%.

The largest percentage losers in the index were Mitsui E&S Holdings 7003.T, tumbling 14.26%, and Pacific Metals 5541.T, shedding 13.56%.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)

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