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Japan Nikkei falls on profit taking

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Headline indices of the share market stumbled on Wednesday, 13 March 2019, as risk-off mood gripped investors on mixed US shares overnight amid worries about business confidence receding on benign US inflation data. Market mood was also dampened after data showed fell in January at the fastest pace in four months. Risk appetite had further soured after British Theresa May's plan to leave the being nixed in a overnight. Around late afternoon, the 225-issue Nikkei Stock Average dropped 276.27 points, or 1.3%, at 21,227.42. The broader Topix index of all First Section issues on the fell 18.09 points, or 1.13%, at 1,587.39.

All 33 subsectors of the declined, with shares in Securities & Commodities Futures, Oil & Coal Products, Insurance, Marine Transportation, Other Financial Business, Nonferrous Metals, and Rubber Products issues being notable losers.

Japan's fell in January at the fastest pace in four months due to declining demand in the auto and as the U. S.-trade war dented global demand. core machine orders dropped a seasonally adjusted 5.4 percent in January, the said on Wednesday - coming in at 822.3 billion yen, following the downwardly revised 0.3 percent fall in December (originally -0.1 percent). On a yearly basis, core machine orders sank 2.9 percent, following the 0.9 percent gain in the previous month.

A soft US inflation report for February reinforced expectations the Federal Reserve will stay patient on rates and could even sound more dovish at its policy meeting next week.

Annual consumer price inflation slowed to its lowest since September 2016 at 1.5%.

British lawmakers crushed Theresa May's divorce deal, forcing parliament to decide within days whether to back a no-deal or seek a last-minute delay. Lawmakers voted against May's amended deal by 391 to 242 as her last-minute talks with EU chiefs on Monday to assuage her critics' concerns ultimately proved fruitless. Parliament will vote later Wednesday on whether to leave the EU with no deal, and if that fails, a further vote on Thursday will decide whether to extend the deadline.

Banks and financials were lower, with slipping 0.5% and down 0.4%. Insurers shed 2.1%, tumbled 4.4% and dropped 1.7%. Trading houses were lower, with down 0.5% and down 0.5%.

and other were battered. Chip equipment makers shed 2.2%, declined 1.9%, while plunged 4.2% and dropped 2.9%.

Airlines were also lower with Airlines down 0.4% and down 0.9%. Automakers were sold, with and both falling 1.2%, while dropped 1.7%.

Bucking the fall, rose more than 2% after the company said to buy back up to 3.3% of its own shares worth 100 billion yen. .

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 13 2019. 10:00 IST