Wednesday 23 October 2019

Japan's shares plunge after turbulent trade

Dominic Lau

Japan's Nikkei share average skidded 3.2pc yesterday in an increasingly tense market after last week's turbulent trade that sent the benchmark reeling to its worst one-day loss in two years.

The Nikkei ended down 469.8 points at 14,142 after trading as low as 14,027. Yesterday's drop broke below the index's 25-day moving average of 14,333 but held above 13,990, the 61.8pc retracement of its slide from February 2007 to October 2008.

A combinations of factors, including worries the US Federal Reserve will roll back its stimulus this year and weak factor- activity data from China, Japan's second-biggest export market, triggered last week's sharp sell-off.

The sour mood extended to yesterday. Yasuo Sakuma, portfolio manager at Bayview Asset Management, said he expected the Nikkei to correct to as low as 13,000, 8pc below where the benchmark closed yesterday.

Toyota shares lost 5pc and was the second-most traded on the main board by turnover, while Japan's top brokerage Nomura Holdings, which was the third-most traded, lost 3.6pc.

The benchmark plunged 7.3pc last Thursday, its biggest single-day percentage loss since the March 2011 earthquake and tsunami.

It had another volatile session the following day, traversing a 7.1pc range between positive and negative territory before ending up 0.9pc.

The broader Topix index sank 3.4pc to 1,154.07 yesterday, with 3.98 billion shares changing hands, down from last week's daily average of 6.21 billion shares.

Irish Independent

Also in Business