TOKYO, Sept 16 (Reuters) - Japanese stocks closed lower on
Friday and posted a weekly decline, as persisting worries about
a global economic slowdown amid rising rates dragged Wall Street
The Nikkei share average ended 1.11% lower at
27,567.65 after plumbing its lowest level since Sept. 7 earlier
in the session. The index lost 2.29% on the week.
The afternoon session saw little movement, however, with
some market participants suggesting investors were holding back
ahead of two national holidays in Japan and the Federal Open
Market Committee's meeting next week.
"With the three-day weekend, the FOMC meeting, and the fact
that next week only has three days of trading, it's hard to buy
right now," said Hiroyasu Mori, a strategist at Okachi
The broader Topix index dropped 0.61%.
U.S. futures fell on Thursday after FedEx withdrew
its financial forecast, warning of a deterioration in the global
economy. Earlier in the day, all three major Wall Street indexes
declined as a raft of economic data suggested the Federal
Reserve would stay aggressive.
A study by the World Bank saying that a "moderate hit to the
global economy over the next year could tip it into recession"
also weighed on sentiment.
Of the Nikkei's 225 constituents, 153 declined and 72
Technology stocks were weak, with the sector down 1.11%.
Chip-making equipment manufacturer Tokyo Electron, a
major contributor to the Nikkei, dropped 4.33% and weighed the
most on the index.
Uniqlo parent Fast Retailing Co Ltd was the next
biggest drag, losing 1.31%.
The utilities sector was the best performer and advanced
1.22% on gains from companies including Kansai Electric Power Co
Inc, Tokyo Gas Co Ltd, and Osaka Gas Co Ltd
The financial sector also gained, rising 0.65% overall.
Fukuoka Financial Group Inc, Resona Holdings Inc
, and Shizuoka Bank Ltd were three of the best
performers on the index.
Toyota-owned truck maker Hino Motors Ltd rose 0.93%
after announcing it would soon restart production on two models
affected by a falsified emissions data scandal, but pared gains
and was up 0.16% by the close.
Office equipment provider Ricoh Co Ltd gained 1.88%
after announcing the acquisition of Cenero LLC, a privately held
audiovisual IT solutions company, in a bid to expand its hybrid
(Reporting by Sam Byford and Tokyo markets team; editing by