The fall was in line with a global sell-off aggravated by North Korea’s claim that it completed a hydrogen bomb test yesterday and as another drop in oil prices sent petroleum-linked shares tumbling. Recent data indicating contraction in factory activity have reinforced those fears.
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He warns that this volatility could be “here to stay” after two years of relative calm on global markets – he adds that it could be a “lean ’16” for some investors if the market remains open to the major daily swings which we have seen in the opening days of trading.
Traders tend to buy the yen as a safe investment in times of turmoil or uncertainty.
The 225-issue Nikkei Stock Average shed 423.98 points, or 2.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 2.21 points, or 0.15 percent, to 1,486.63. “But expectations for strong earnings for Japanese companies continue, so now may be a good time to buy (cheap) stocks”, said Masayuki Kubota, chief strategist at Rakuten Securities. “In August, investors who made money with that trade are probably doing it again now”.
Japan’s currency was at 119.14 against the dollar as of 8:49 a.m.in Tokyo from 119.06 on Tuesday.
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ABC-Mart Inc fell 0.2% to 6,410 yen after the brand goods retailer said total sales in December soared 10.3% from a year ago month following an increase to 9.5% in November.
