The Nikkei lost 4.1 per cent in overnight trading to 16,930.84. Fed officials, meanwhile, continue to signal they will raise USA interest rates this year, marking the beginning of the end of ultra-low interest rates that have underpinned stock markets. Trading of its shares was halted for Tuesday.
Advertisement
Star Micronics Co., Ltd increased 3.2% to 1,626 yen after the machine tools and precision parts maker stated said net sales in the first-half ending in August jumped 19% from a year ago to 27.17 billion yen.
The yen strengthened to 120.06 against a dollar. China-related issues, such as robot maker Fanuc, automaker Honda and construction machinery manufacturer Komatsu, suffered hefty losses.
Shares of Mitsui O.S.K., which holds a 21.8 per cent stake in the bankrupt company, dropped 7.4 per cent to Y288.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 35.64 points, or 2.59 percent, higher at 1,411.16. With China\’s troubles however and the fact that Yen has actually appreciated in the last month on account of its safe haven status, investors seem to be doubting whether Abernomics can pull off a miracle. A key economic reading coming up is the September factory sector PMI survey coming out on Thursday. A host of commodities-exporting countries like Canada, Australia, Brazil and South Africa have been hit hard by this weak commodity price backdrop.
Macau gaming counters led the HK market decline. It then dived the same scale in local market to HK$8.4.
The Dow Jones Industrial Average closed down 1.92 percent, while the broad-based S&P 500 shed 2.57 percent and the tech-rich Nasdaq Composite Index tumbled 3.04 percent.
Advertisement
Market reaction to worries about the debt-laden balance sheet of Glencore, whose London-listed unit sank nearly 30% to a new all-time low Monday, “feels like a bit of a turning point or an acceleration in pessimism” for the region, said Steve Wang, research director at Hong Kong-based research firm Reorient Financial Markets Ltd.
