The Tokyo Stock Exchange closed on Wednesday at a small loss. Investors processed the US inflation rate, which was higher than expected. The sharp rise in the general price level raised fears that the Federal Reserve might start to phase out aid measures earlier or raise interest rates. The markets were therefore particularly looking forward to the statements that American Central Bank President Jerome Powell will make to Congress on Wednesday and Thursday.
The leading Nikkei in Tokyo finished 0.4 percent in the minus at 28,608. 49 points. In the previous two trading days, the yardstick still managed to win almost 3 percent. On the macroeconomic level, final figures from the Japanese government showed that industrial production declined more in May than previously reported. The Japanese tire manufacturers Yokohama Rubber and Bridgestone were among the largest dropers with losses of more than 3 percent.
The airlines were also in the tail group due to ongoing concerns about the rapid advance of the Delta variant of the coronavirus. ANA Holdings and Japan Airlines dropped 2 and over 3 percent. Sumitomo Mitsui Financial Group fell 0.7 percent. According to business newspaper Nikkei, the Japanese bank wants to take a 5% stake in the American investment bank Jefferies.
The Chinese stock exchanges also lost ground. The main index in Shanghai was down 0.5 percent in the meantime, and the Hang Seng index also fell 0.5 percent. In South Korea, where coronavirus measures were tightened, the Kospi lost 0.2 percent. The Australian All Ordinaries won 0.4 percent. In Sydney, the lockdown was extended by at least two weeks. Australia’s largest city is already in the third lockdown week to control a Delta-induced coronavirus outbreak.