Japan shares fall on economic slowdown fears

Japan’s Nikkei index closed lower on Wednesday after a two-day rally, dragged down by energy stocks, as fears of a global economic slowdown weighed on the market.

The Nikkei index fell 1.20 percent to close at 26,107.65 points. The broader Topix index fell 1.23 percent to 1,855.97 points.

Shares of oil drilling companies fell by 10 percent, becoming the worst performer among the 33 sub-indexes on the Tokyo Stock Exchange.

Refining shares fell 5.12 percent and utilities shares fell 3.73 percent.

Among the miners, Inpex was the worst performer, falling 10.05 percent. Idemitsu Kosan Refinery fell 6.1 percent and Tokyo Electric Co. fell 6.28 percent.

Pharmaceutical company Esai bucked the trend, with its stock rising 5.87 percent.