THE JAPAN NEWS

 

TOKYO (Jiji Press) — The benchmark Nikkei average plunged to a seven-month low on the Tokyo Stock Exchange Thursday, as investors took fright from an overnight slump in U.S. equities.

The 225-issue Nikkei average tumbled 822.45 points, or 3.72 percent, to end at 21,268.73, the lowest finish since March 29. On Wednesday, the key market gauge advanced 80.40 points.

The TOPIX index of all First-Section issues closed down 51.15 points, or 3.10 percent, at 1,600.92, a level unseen since Sept. 8, 2017. It added 1.35 points the previous day.

Stocks fell almost across the board from the outset of Thursday’s session, with the Nikkei average briefly losing nearly 900 points, after the 30-issue Dow Jones industrial average dived 2.41 percent on Wednesday.

The day’s selling spree “did not represent panic sales,” an official of a bank-affiliated securities firm said.

“Investors unloaded shares calmly out of concerns over the economy and business results in response to disappointing earnings and economic data,” the official said.

The official noted recent negative earnings-related news from both Japan and the United States as well as sluggish economic data, including dismal U.S. new home sales for September released overnight.

“There has been little positive earnings news,” the official said, adding that Japanese corporate profits may have hit a ceiling.

“The market is likely to stay unstable,” Hiroaki Hiwada, strategist at Toyo Securities Co. said.

Investors will continue examining earnings releases, U.S. and Chinese economic data to weigh up possible impacts from the two countries’ trade war and developments related to the Nov. 6 U.S. midterm elections, Hiwada said.

Falling issues overwhelmed rising ones 2,072 to 34 in the TSE’s first section, while three issues were unchanged.

Volume increased to 1,641 million shares from 1,417 million shares on Wednesday.