Japan Nikkei ends lower

27 Oct 2022 , 04:48 PM

Japanese share market finished session lower on Thursday, 27 October 2022, amid reports of intervention by the government and ahead of the Bank of Japan interest rate decision tomorrow. At closing bell, the 225-issue Nikkei Stock Average index declined 86.60 points, or 0.32%, to 27,345.24. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 12.65 points, or 0.66%, to 1,905.56. Governments around the world have sought to stabilize their currencies and defend their economies against the Federal Reserves rapid interest rate increases, which have tilted the field in favor of the dollar. The Fed has raised rates five times this year and is expected to make further moves as inflation remains high in the United States. The rate increases have lifted the returns on offer to investors buying U.S. assets, drawing money into America and strengthening the dollar. Since the U.S. economy is on firmer footing compared with the rest of the world, investors worried about a global downturn are also pouring money into the worlds largest economy ? making the dollar even stronger. As a result, the currencies of other countries ? which are valued in relation to each other ? have weakened, upsetting markets in some of the largest economies in the world, from Japan and China to India and Britain. Shares of Canon Inc was down 6.5% after releasing its quarterly earnings report and revising its net profit forecast downwards. Seiko Epson Corp fell 4.8% following Canons warning of decreased demand due to fewer customers working from home. Hitachi Construction Machinery Co shares advanced 4.6% after the company expects its operating profit for the fiscal year to be 17.6% higher than previously forecast. Shares of Capcom Co was up 7.75% after video game maker increased its profit guidance for the current year. CURRENCY NEWS: The dollar was weaker at levels below 146 yen in Tokyo trading on Thursday, hit by large-lot selling apparently by foreign short-term players. At 5 p.m., the dollar stood at 145.72-73 yen, down from 147.08-09 yen at the same time on Wednesday. Powered by Capital Market – Live News