Japan Shares Drop on Soft Output Data, Middle East Risks
Japan stocks closed lower Thursday, pressured by weaker factory output data that signaled mounting economic strain from Middle East tensions.The Nikkei 225 fell 1.06%, or 632.54 points, to close at 59,284.92.Industrial production fell 0.5% in March from a month earlier, missing expectations for a 1.1% rise and marking a second straight decline after a 2.0% drop in February, government data showed.Manufacturers expect output to fall 0.7% in April. The weak trend underscores the challenge for the Bank of Japan, as rising oil prices lift inflation while weighing on the import-reliant economy.In other economic news, Retail sales rose 1.7% year on year to 14.3 trillion yen in March, rebounding from a 0.1% decline, as gains in food and beverage offset a drop in fuel sales.On the corporate front, Yamaichi Electronics (TYO:6941) rose 4% after restoring systems at its Philippines unit following a ransomware attack, with no operational or data leak impact.Globe-ing (TYO:277A) fell 4% after shifting its listing to the Prime Market from the Growth segment on the Tokyo Stock Exchange.Toho Holdings (TYO:8129) gained 3% after saying it will seek shareholder approval to activate takeover defenses against a large-scale share purchase by 3D Investment Partners.