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Japan’s Nikkei Snaps 3 Sessions of Gains as SoftBank, Daikin Drag

Japan’s Nikkei share average snapped three consecutive sessions of gains on Wednesday, as heavyweights SoftBank Group and Daikin Industries slumped and caution grew ahead of the release of U.S. inflation data.

The Nikkei index fell 0.53% to close at 32,204.33, while the broader Topix slipped 0.40% to 2,282.57.

All three major Wall Street benchmarks finished lower on Tuesday in a broad sell-off after the downgrading of several lenders by credit rating agency Moody’s reignited fears about the health of U.S. banks and the economy.

“The Japanese market was affected by the weakness of U.S. equities but losses were limited as investors had appetite to buy shares on dips,” said Chiaki Hirokane, a strategist at Resona Holdings.

“Investors were also cautious ahead of the release of U.S. inflation data.”

The U.S. inflation report due out on Thursday is expected to show headline inflation picked up slightly in July to an annual 3.3% pace, while the core rate is seen unchanged at 4.8%. The data could offer further clues on the Federal Reserve’s monetary policy path.

In Japan, shares of Daikin Industries tumbled 11.39%, becoming the biggest drag on the Nikkei, even as the air-conditioning maker posted a 13.8% rise in its first-quarter net profit.

SoftBank Group fell 3.13% after the start-up investor posted a surprise loss but said it was dipping its toes back into new investments after its Vision Fund unit returned to the black for the first time in six quarters.

Nikon slumped 11.16% after the camera maker posted a decline in its first-quarter net profit and cut its half-year forecast.

Bandai Namco Holdings jumped 7.12% after the gamemaker raised its outlook for the six months through September.

Source : Yahoo!Finance