TOKYO, Sept 30 (Reuters) - Japanese stocks fell sharply
on Friday, posting their biggest monthly drop since the COVID-19
pandemic first rocked markets 2-1/2 years ago, tracking
overnight Wall Street losses.
The Nikkei share average closed down 1.83% at
25,937.21, its lowest close since July 1. The index shed 7.669%
in September, its biggest monthly decline since March 2020.
The broader Topix fell 1.76% to also record its
worst month since March 2020.
All three major U.S. stock indexes fell overnight on
heightened fears of a recession and a report that Apple Inc
has cancelled a planned boost in iPhone 14 production.
"Yesterday's news about Apple suspending its production
increase caused the market to factor in a global recession,"
Tokai Tokyo Research Institute senior strategist Takashi
"Even if the economy is expected to improve in Japan,
overseas trends will make it difficult for investors to buy
Japanese stocks alone."
"I think the falls in U.S. stocks were an overreaction,"
said Eiji Kinouchi, chief technical analyst, Daiwa Securities,
adding the same could be true of Japan, citing a gap between
supply and demand at the end of the month.
Every sector on the Nikkei fell except real estate, which
gained 0.54%. Of the index's 225 constituents, 186 declined, 35
advanced, and four traded flat.
Unitika Ltd, up 2.41%, and Oki Electric Industry Co
Ltd, up 1.84%, were among the best performers on the
Nikkei. Both stocks are set to be removed from the index after
Shinsei Bank Ltd jumped 6.96%, after a report in
the Nikkei newspaper's online edition that SBI Holdings has
applied for approval as a bank holding company, allowing it to
increase its stake in the bank to more than 50%.
Automakers were among the worst performers, led by Mazda
Motor Corp, down 8.17%. Mitsubishi Motors Corp
, Nissan Motor Co Ltd, and Subaru Corp
Clothing giant and Uniqlo parent company Fast Retailing Co
Ltd weighed on the index the most, falling 3.58%.
(Reporting by Sam Byford and Tokyo markets team; Editing by