Japanese shares fall as tech heavyweights track Wall Street losses
TOKYO, Aug 22 (Reuters) - Japanese shares closed lower on Monday, with tech heavyweights leading the decline after Wall Street fell at the end of last week on higher bond yields.
The Nikkei share average .N225 fell 0.47% to 28,794.50, recovering some ground lost in early trade as China cut its benchmark lending rates.
The broader Topix .TOPX inched 0.1% lower to 1,992.59.
"The Japanese market tracked Wall Street's declines (on Friday)... investors were concerned about inflation in Europe, which is higher than expected," said Shuji Hosoi, a senior strategist at Daiwa Securities.
"The yields rose because of that and that spurred concerns about an economic slowdown. Today, Japanese manufacturers were hit by these worries."
The rise in U.S. yields and slowdown concerns due to fears of aggressive policy tightening to tame inflationary pressures in Europe, including the UK, hit Japanese companies which are mainly exporters, he added.
U.S. stocks fell on Friday in a broad sell-off led by mega caps as bond yields rose, with the S&P 500 posting losses for the week after four straight weeks of gains.
Amazon.com AMZN.O , Apple <AAPL.O and Microsoft MSFT.O all fell and were the biggest drags on the S&P 500 and Nasdaq. Higher rates tend to be a negative for tech and growth stocks, whose valuations rely more heavily on future cash flows.
In Japan, chip-making equipment maker Tokyo Electron 8035.T was the biggest drag on the Nikkei, dropping 1.97%. Robot maker Fanuc 6954.T lost 1.93% and sensor maker TDK 6762.T slipped 2.26%.
Hino Motors 7205.T fell 3.53% to become the worst performer on the Nikkei as the automaker said it would suspend shipments of some small trucks after confirming that a widespread data falsification scandal included those models.
Energy-related shares rose, with oil explorers .IMING.T and refiners .IPETE.T rising 2.47% and 1.77%, respectively.
Inpex Corp 1605.T rose 3.01% and was the top gainer on the Nikkei.
Reporting by Junko Fujita; Editing by Rashmi Aich and Subhranshu Sahu