TOKYO, May 19 (Reuters) - Japan's Nikkei share average
snapped a four-session rally on Thursday after Wall Street
plunged overnight on fears that surging inflation would eat into
corporate profits and usher in an economic slowdown.
Dragged down by losses in market heavyweight Fast Retailing,
the Nikkei closed 1.89% lower at 26,402.84 and posted
its biggest drop since May 9. The broader Topix slipped
1.31% to 1,860.08.
"With U.S. shares losing momentum, it was hard for Japanese
shares to rise," said Seiichi Suzuki, chief equity market
analyst at Tokai Tokyo Research Institute.
"But the Nikkei is relatively firm as it has not touched a
bottom hit in March. That is because in part the weaker yen
makes Japanese shares look cheaper and lifted corporate
U.S. stock indexes plunged on Wednesday after Target's
earnings showed the toll of rising price pressures,
sending the retailer's shares down by a quarter and deepening
worries about the impact of inflation on the U.S. economy.
It was the worst one-day loss for the S&P 500 and Dow Jones
Industrial Average since June 2020.
In Tokyo trading, Uniqlo-owner Fast Retailing fell
3.12% and chip-making equipment maker Tokyo Electron
lost 3.42%. Technology start-up investor SoftBank Group
All but two of the 33 industry sub-indexes on the Tokyo
Stock Exchange fell, with shipping firms leading the
Auto and parts makers lost 1.81% as Toyota Motor
and its affiliate Denso slipped 1.91% and
Nintendo slipped 0.19% after a filing showed Saudi
Arabia-Linked public investment fund owned a 5.01% stake in the
Staffing agency Recruit Holdings fell 4.14% and was
the worst performer among the top 30 core Topix names, followed
by retailer Seven & i Holdings, which lost 4.00%.
(Reporting by Junko Fujita; Editing by Subhranshu Sahu)