Nikkei down on US lead

<p>Investors are worried about oil prices’ slide and its effect on the global economy.</p>

Japanese shares tumbled today (January 14th) after a bearish session on Wall Street, as oil prices continue to fall and the yen strengthens against the dollar.

The benchmark index shed 1.71 per cent, to end at 16,795.96, its lowest closing in nearly a month. The Topix closed 1.22 per cent down, at 1,357.98.

Wall Street extended its losing streak to a third session yesterday on the back of plunging crude oil prices, and investor worry about how producer countries will be affected.

Sentiment was also hampered by the strengthening yen, with the dollar standing below ¥117.50.

"While still expecting that the Bank of Japan will purchase exchange-traded funds when the Nikkei average takes a downturn, investors stayed reluctant to actively buy on dips,"  Hiroichi Nishi, equity general manager at SMBC Nikko Securities Inc., told the Japan Times.

Japanese shares' fall comes despite fresh figures showing Japan had a current account surplus for the fifth month in a row. The country recorded a surplus in November of 433 billion yen (£2.43 billion).

Learn about the Asian markets and CFD trading at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.