Japanese shares fell to three-week lows today (October 2nd) due to investors' worries over the global economy.
A series of report published yesterday showed German factory activity shrank for the first time in 15 months, while China's manufacturing sector barely grew and the United States slowed more than expected.
Japanese manufacturing activity also expanded in September at a slightly slower pace than the previous month, in a further sign that economic momentum is faltering.
"The sentiment was already weak yesterday after exporters didn't perform well even after the yen fell to 110 to the dollar. The market will be in for a correction for now," said a trader at a Japanese brokerage firm quoted by Reuters.
The 225-issue Nikkei Stock Average ended 2.61 per cent lower to 15,661.99, its worst finish since September 1st. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 2.89 per cent lower at 1,280.15.
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