Nikkei hits 1-1/2-week low
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Nikkei hits 1-1/2-week low on global economy worries
Japan’s Nikkei slipped to a 1-1/2-week low on Wednesday after a sell-off on Wall Street and falling U.S. bond yields revived worries about the global economy and corporate earnings growth.
Financials, auto and machinery sectors took a beating, though bargain-hunting by investors helped the market recoup some of its earlier losses, traders said.
The Nikkei share average dropped 0.5 percent to 21,919.33, the lowest close since Nov. 26.
Wall Street tumbled more than 3 percent on Tuesday, led lower by bank and industrial shares, as the U.S. bond market sent unsettling signs about economic growth.
A prominent Federal Reserve official’s comments about the path of interest rate hikes added to the uncertainty for investors, as did setbacks for Britain’s plans to leave the European Union.
The broader Topix dropped 0.5 percent to 1,640.49, with insurers and banks underperforming.
Dai-ichi Life tumbled 3.2 percent, T&D Holdings shed 2.2 percent and MS&AD Insurance declined 1.4 percent. Mitsubishi UFJ Financial Group dropped 0.9 percent and Chiba Bank stumbled 4.4 percent.
Automakers and machinery makers, which are sensitive to global demand, were also battered. Honda Motor stumbled 2.4 percent, Subaru Corp shed 0.9 percent and Fanuc Corp slipped 3.4 percent. Semiconductor-related shares weren’t spared the investor angst either, with Advantest Corp tumbling 4.6 percent and Sumco Corp falling 3.4 percent.
Declining issues outnumbered advancing ones by 1,469 to 590.