Tokyo's stocks extend losses

16 Nov, 2017

Tokyo stocks closed sharply lower on Wednesday, with the key index extending its losing streak to a sixth straight day as traders continued to cash in recent gains. The benchmark Nikkei 225 index fell 1.57 percent, or 351.69 points, to 22,028.32 while the broader Topix index ended down 1.96 percent, or 34.86 points, at 1,744.01.
"Investor sentiment has weakened after the recent fast-paced rises," which brought the key Japanese index to a quarter-century high last week, said Toshihiko Matsuno, chief strategist at SMBC Friend Securities. Negative factors weighing on the market included slower Chinese factory output, a possible delay in US tax reform and tumbling oil prices.
"In the latest market rally, investors had been biased toward optimism over global growth," said Mitsushige Akino, an executive officer with Ichiyoshi Asset Management. Japan's economy grew 0.3 percent in the third quarter, marking the longest string of gains for more than 16 years, although the rate of expansion slowed from 0.6 percent in the preceding three months. Sony fell 2.46 percent to 5,095 yen and Toyota lost 2.41 percent to 6,960 yen.
Oil explorer Inpex dropped 3.64 percent to 1,282 yen and Japan Petroleum Exploration tumbled 4.23 percent to 2,422 yen. Kobe Steel, hit by a quality data-faking scandal, fell 3.99 percent to 1,058 yen as the company said it would spend 10 billion yen on measures to prevent a recurrence.

Read Comments