TOKYO, Dec. 8 (Xinhua) -- Japan's benchmark Nikkei stock index closed lower Thursday with large-cap technology issues taking a hit on concerns that the U.S. economy could be heading towards a recession.
The 225-issue Nikkei Stock Average lost 111.97 points, or 0.40 percent, from Wednesday to close the day at 27,574.43.
The broader Topix index, meanwhile, dropped 6.81 points, or 0.35 percent, to finish at 1,941.50.
Dealers said data indicating persistent inflation in the U.S. may lead the U.S. Federal Reserve to continue with its aggressive rate hikes have sparked concerns that the world's largest economy could slip into a recession.
"It's not clear if it's the Fed's rate hikes themselves or concerns over a recession caused by the rate hikes, but whichever the cause is, sentiment is worsening," Masahiro Yamaguchi, head of investment research at SMBC Trust Bank, was quoted as saying.
"It's hard to tell how much the Fed will increase interest rates next year, although it is widely expected that the central bank will slow the pace of rate hikes at a meeting next week," said Yamaguchi.
Market strategists said comments from executives at top U.S. banks signaled that a recession was likely when looking forward, adding a downbeat mood.
"Investors were worried about global economic and corporate outlook, following comments from Goldman Sachs and JP Morgan executives," Maki Sawada, a strategist at Nomura Securities, was quoted as saying.
By the close of play, electric appliance, mining and bank-oriented issues comprised those that declined the most.
High-tech issues following their U.S. peers lowered overnight on concerns that a U.S. recession would impact demand, with chipmaking equipment maker Tokyo Electron dropping 0.9 percent and industrial robot maker Fanuc losing 0.6 percent.
Electric motor maker Nidec slumped 2.9 percent, while Sony Group ended 1.9 percent lower.
A drop in yields on long-term U.S. government bonds sent financial-oriented issues lower, with Orix losing 1.8 percent and Mitsubishi UFJ Financial Group sliding 1.1 percent.
Losses were trimmed, however, by Nikkei's heavyweight SoftBank Group adding 2.1 percent on news that its chairman and CEO has raised his stake in the conglomerate.
Issues that fell outpaced those that rose by 1,096 to 630, while 110 ended the day unchanged.
On the Prime Market on Thursday, 1,091.11 million shares changed hands, rising from Wednesday's volume of 1,045.70 million shares.
The turnover on the penultimate trading day of the week came to 2,699.67 billion yen (19.70 billion U.S. dollars). ■