The Nikkei index closes stable amid economic concerns

Japan’s Nikkei closed little changed on Tuesday; energy-related stocks and shipping companies were the biggest losers, while sentiment was lowered by concerns about slowing US and Chinese economies.

The Nikkei index closed down 0.01 percent at 28,868.91, ending two days of gains that brought it to its highest level in more than seven months. The broader Topix index fell 0.15 percent to 1981.96.

China’s central bank cut lending rates on Monday to revive demand. Data showed that the economy unexpectedly slowed in July as factory and retail activity shrank due to Beijing’s policy of freeing the country from COVID-19 and a real estate crisis.

In Japan, shares of oil exploration companies fell 1.48 percent and refineries 1.5 percent after the decline in oil prices due to demand concerns in China, the world’s largest buyer of crude oil.

Shipping stocks fell 4.08 percent, leading to declines among 33 sector sub-indexes on the Tokyo Stock Exchange.

Mitsui OSK Lines was the worst performer on the Nikkei index, as it fell 4.12 percent, followed by Nippon Yusen, which fell by 4.09 percent, and Kawasaki Kesen Kaisha, which fell by 3.98 percent.

SoftBank Group shares fell 2.56 percent.

Style shares rose 27.3 percent after Amazon acquired a 36.95 percent stake in the operator.

JAFCO Group shares jumped 12.37 percent after a group of shareholders backed by a prominent activist investor “indicated” that they could buy a majority stake in the company.