Roundup: Tokyo stocks close lower on caution over U.S. inflation
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E-mail Xinhua, July 14, 2021
TOKYO, July 14 (Xinhua) -- Tokyo stocks closed slightly lower Wednesday after unexpectedly high U.S. consumer price index data for June boosted caution over rapid inflation.
The 225-issue Nikkei Stock Average ended the day down 109.75 points, or 0.38 percent, from Tuesday at 28,608.49.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 4.48 points, or 0.23 percent lower at 1,963.16.
Declining issues were led by marine transportation, rubber product, and air transportation issues.
The Nikkei index remained in negative territory throughout the day, recording overnight losses on Wall Street, with investors wary about earlier stimulus tapering because of higher-than-expected inflation for June in the United States.
The U.S. consumer price index, released Tuesday, soared 5.4 percent in June from the previous year, the quickest pace of rise in nearly 13 years, and larger than the 4.9 percent growth forecast by economists.
However, "the market's reaction to rapid inflation was somewhat limited, with investors supporting the U.S. Federal Reserve's view that acceleration is temporary," said Yutaka Miura, senior technical analyst at Mizuho Securities Co.
Market participants are caring about Federal Reserve Chair Jerome Powell's congressional testimony on Wednesday and Thursday for hints on whether the CPI data will guide the bank to tighten its monetary policy, brokers said.
On the First Section, decliners outnumbered advancers 1,177 to 910, while 105 finished the day unchanged.
Some component providers for Boeing Co. dropped after the company said Tuesday there is temporarily a reduction on production due to additional rework required on its undelivered 787 aircraft, brokers said.
Mitsubishi Heavy Industries fell 2.2 percent, and IHI went down 1.4 percent.
Meanwhile, shares that had been sold lately such as construction issues drew buying, as Shimizu surged 1.7 percent and Daiwa House Industry gained 1.5 percent.
Toho rose 11.1 percent, after the cinema operator said Tuesday its operating profit for the March-May business period had nearly quadrupled from a year earlier.
Trading volume on the main section increased to 981.18 million shares from Tuesday's 957.52 million shares. Enditem
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