TOKYO, July 1 (Reuters) - Japan's Nikkei index fell for a
third straight session on Friday to end at a near two-week low,
tracking Wall Street overnight losses, as investors were worried
about an economic slowdown in the world's largest economy.
The Nikkei share average fell 1.73% to 25,935.62,
its lowest finish since June 20, after rising as much as 0.5%
earlier in the day. For the week, the index fell 2.1%.
The broader Topix lost 1.38% to 1,845.04 and posted
a 1.1% weekly loss.
"Investors were concerned about the outlook of U.S.
economy," said Shoichi Arisawa, general manager of the
investment research department at IwaiCosmo Securities.
Wall Street ended lower overnight, with the benchmark S&P
500 posting its steepest percentage drop for the first
six months since 1970, amid concerns over the Ukraine-Russia
war, soaring inflation, higher interest rates and, more
recently, a possible U.S. recession.
In Japan, heavyweights fell, with Uniqlo owner Fast
Retailing slipping 4% to become the biggest drag on the
Nikkei. Chip-making equipment maker Tokyo Electron lost
Mitsubishi Corp fell 5.38% and peer Mitsui & Co
lost 5.51% after Russia moved to create a new firm to
take charge of the Sakhalin-2 oil and gas project in the
country's far east.
The new firm will take over all rights and obligations of
Sakhalin Energy Investment Co, in which the two Japanese trading
companies and Shell Plc hold just under a 50% stake.
"The news about the rights for the Sakhalin project dented
investor sentiment as well," said Arisawa.
Travel-related stocks were weak, with airlines.
and railways losing 3.05% and 1.03%, respectively,
amid a recent rise in the number of domestic COVID-19 cases. The
real estate sector lost 0.82%.
Shares of departmental stores rose, with Takashimaya
surging 8.8% and J.Front Retailing gaining
1.12%, after their profits turned to positive in the latest
(Reporting by Junko Fujita; Editing by Rashmi Aich)