Japan Shares Follow Wall Street Lower

Japanese shares closed down more than 2 percent on Wednesday, tracking losses incurred by Wall Street overnight on rising concerns about inflation, while investors awaited the outcome of the ruling party leadership elections that will determine the next prime minister in Japan.

The Nikkei average fell 2.12 percent to close at 2,9544.29, its lowest since Sept. 3. The index lost most of its gains after Prime Minister Yoshihide Suga tendered his resignation that day.

The broader Topix index fell 2.09% to 2,038.29 points.

The Standard & Poor’s 500 index fell 2.04 percent, the largest one-day decline since May, as deepening inflation concerns raised borrowing costs in the United States.

A few minutes before the closing of the Tokyo market, Fumio Kishida was chosen as the new leader of the ruling Free Democratic Party, after a competition with Taro Kono, as neither of them obtained a majority in a preliminary vote that began earlier in the day.

Technology heavyweights led the decline, with Tokyo Electron shedding 5.27 percent, Daikin Industries losing 4.15 percent and Advantest dropping 5.64 percent.