Asia
Japanese Shares Extend Losses to Close Lower on Wednesday On Weak Global Sentiment
Japanese equities closed in the red after a weak trading session on Wednesday, tracking the negative sentiment in the global markets over concerns about rising inflation, extended a selloff in U.S. government bonds, and pushed yields to multi-year highs.The Nikkei 225 closed down 795.20 points or 1.3%, at 59,755.39.According to media reports, on Tuesday, yields on the 30-year Treasuries hit levels last seen in 2007, as investors are spooked that energy costs may lead to the US Federal Reserve hiking interest rates.To boost the domestic economy, the Japanese government is poised to issue guidelines encouraging startups to see acquisitions as a viable alternative to IPOs, according to a Nikkei Asia report on Wednesday.Also, sentiment among Japanese factory managers improved slightly in May, driven by a recovery in commodity-linked industries from a contraction the previous month caused by the Iran war.However, weakness in the automotive sector and several other industries prevented a stronger rebound, according to the Reuters Tankan poll.On the corporate side, Daiwa Securities Group (TYO:8601) closed down over 1%, after the news that it is acquiring a 10% voting interest in Ireland-based aircraft lessor Airborne Capital by buying common shares from existing shareholders, subscribing for subordinated notes, and obtaining warrants that could allow it to increase its interest to 20%.Also, TDK (TYO:6762)'s shares closed lower by 1%, after its subsidiary Amperex Technology (Singapore) agreed to acquire a 100% stake in Malaysia's Linergy Power for $241.1 million.
Nikkei 225TYO:6762TYO:8601