- Title: MARKETS-JAPAN/CLOSE Japan stocks tumble to 6-month lows
- Date: 24th August 2015
- Summary: TOKYO, JAPAN (AUGUST 24, 2015) (REUTERS) TOKYO STOCK EXCHANGE (TSE) BUILDING SIGN READING (English): "JPX, TOKYO STOCK EXCHANGE" ELECTRONIC STOCK BOARD OF MARKET ELECTRONIC STOCK BOARD SHOWING NIKKEI 225 STOCK AVERAGE CLOSING AT 18540.68 DOWN 895.15 POINTS
- Embargoed: 8th September 2015 13:00
- Keywords:
- Location: Japan
- Country: Japan
- Topics: General
- Reuters ID: LVA95P4XHSOZ58ORTZN8U0F63PTP
- Aspect Ratio: 16:9
- Story Text: Japanese stocks posted their biggest fall in more than two years on Monday (August 24), with the Nikkei average sinking to a 6-month low on fears of a China-led global economic slump.
The Nikkei share average dropped 4.6 percent to 18,540.68, falling below its 200-day moving average for the first time since October.
The broader Topix fell 5.9 percent to close at 1,480.87, with its turnover surpassing 4 trillion yen for the first time since March.
Both have fallen more than 10 percent from their multi-year peaks hit earlier this year.
Japan's top government spokesman said on Monday that he wants to closely monitor financial market moves in Japan and overseas as worries about China's economy spark a global stock market selloff.
Chief Cabinet Secretary Yoshihide Suga told reporters there are still many positive signs in Japan's economy, such as record-high corporate earnings and improving wages.
"As for our economy, our corporate profits are at an all time high and it is on a gradual recovery path. So we want to monitor not only our economic situation but also global stocks including China's bourse," Suga told reporters on Monday.
The Nikkei volatility index, which measures market players expectations on how volatile the market will be, jumped to over 35 percent, hitting its highest level in two years.
Global cyclical stocks led the declines, with the transport equipment sector tumbling 6.3 percent and the electric appliance sector falling 5.9 percent.
Toyota Motor dived 6.8 percent, Honda Motor Co shed 6.5 percent, Panasonic Corp declined 5.6 percent and Hitachi fell 5.7 percent.
Financials were also battered after investors grew increasingly risk-averse, with Mitsubishi UFJ Financial Group dropping 8.3 percent, Sumitomo Mitsui Financial Group shedding 8.1 percent and Nomura Holdings falling 6.6 percent.
Still the latest sharp falls in share prices are rekindling talk that the Bank of Japan, determined to stoke inflation, may step up efforts to boost the economy. - Copyright Holder: REUTERS
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