Tokyo shares have closed 1.11 per cent lower as investors stayed cautious after data showed a slump in Chinese imports, reigniting worries about the pace of growth in Asia’s largest economy.
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Japanese shares fell on Tuesday as investors took profits on the previous week’s gains, while tumbling crude prices led to a selloff on oil-related stocks.
The Nikkei share average lost 1.1 percent to close at 18,234.74 after rising 4 percent last week.
Short-covering had driven a rally leading into U.S. earnings season, but buyers receded after soft consumer price data from China underscored the fragile state of its economy and persistent global deflationary pressures.
Steel companies, which are among the most exposed to China, were among the hardest hit during the morning session as the Topix subindex for iron and steel shed 3.8 percent. Inpex Corp shares fell 3.4 percent while Japan Petroleum Exploration Co shares lost 3.2 percent.
In share trading, market heavyweight SoftBank gained 1.22 percent to 6,275 yen, while drug makers also rose. The broader Topix index of all First Section issues on the Tokyo Stock Exchange moved 12.00 points (0.79 percent) lower to 1,503.13.
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The JPX-Nikkei Index 400 fell 2.4 percent to 13,148.42.
