TOKYO, July 1 (Reuters) - Japan's Nikkei index erased early
gains to trade lower on Friday tracking overnight Wall Street
losses, as investors were worried about an economic slowdown in
the United States.
The Nikkei share average fell 0.88% to 26,159.53 by
the midday break and is set to post a 1.2% weekly loss.
The broader Topix slipped 0.71% to 1,857.49, on
course to edge down 0.5% for the week.
"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 2.12% and chip-making equipment
maker Tokyo Electron losing 3.52%.
Mitsubishi Corp fell 5% and dragged the Topix the
most and peer Mitsui & Co lost 5.5%.
Russia will create a firm that would take over all rights
and obligations of the Sakhalin Energy Investment Company, a
consortium half-held by the two trading firm and Shell.
"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 1.74% and 0.45%, respectively,
amid a recent rise in the number of domestic COVID-19 cases. The
real estate sector lost 0.05%.
Department stores' shares rose, with Takashimaya
surging 9.77% and J.Front Retailing gaining 3.28%,
after their profits turned to positive in the latest quarter.
(Reporting by Junko Fujita; Editing by Rashmi Aich)