The Japanese Nikkei closed below 27 thousand points and shares in chips limit losses

The Japanese Nikkei index closed Friday below the main level of 27,000 points, affected by the falls recorded last night by Wall Street, amid fears that the announcement by the US Federal Reserve of a sharp rise in interest rates could cause a recession.

But the losses were limited by strong gains in the chip-related stocks in amid an increase in the Philadelphia Semiconductor Index, along with strong profits for IBM and local chip equipment supplier Disco.

The Nikkei index fell 0.43% to close at 26,890.58 points, close to the lowest level recorded during the day at 26,869.38. Of the 225 stocks in the index, 186 fell, 35 increased and 4 remained unchanged.

The broader Topix index fell 0.71% to 1881.98 points.

Over the week, the Nikkei lost 0.74%, while the Topix lost 0.85%.

The interest rate sensitive real estate sector registered today performance worse than Nikkei, in decline of 1.67%, followed by the public services sector, which lost 1.26%.

The energy sector was the only one to close in upside, rising by 0.03%.

Although the tech sector closed lower, chip-related stocks rose, with Tokyo Electron gaining 4.6%, making it the best on the Nikkei index.

Investors look forward to Japanese profits next week as more than 300 companies announce their results, as well as a policy meeting to be held next Friday by the Bank of Japan.

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