Japanese Shares Hit 1-Month Lows

The Nikkei 225 Index fell 0.7% to around 27,490 while the broader Topix Index dropped 0.9% to 1,930 on Thursday, hitting their lowest levels in about a month as growing recession fears globally and expectations that the US Federal Reserve will tighten further weighed on risk assets.

Investors also reacted to data showing Japan’s economy contracted less than expected in the third quarter, while the country’s current account unexpectedly turned to deficit in October.

Technology stocks led the retreat, with notable losses from Tokyo Electron (-1.3%), Lasertec (-4%) and Keyence (-1.5%).

Other index heavyweights also declined, including Toyota Motor (-1.1%), Sony Group (-2.7%) and Mitsubishi UFJ (-1.9%).

Meanwhile, SoftBank Group gained 1.6% as CEO Masayoshi Son raised his stake in the company to 34% in what could potentially lead to a buyout of the Japanese conglomerate.