The Nikkei has slipped to its lowest closing level in almost a month after falling badly during trading today (December 16th).
It lost 1.6 per cent of its value to fall to 15,152.91 – a drop of more than 250 points for the session – which was a three-and-a-half week low for the index.
The Nikkei has not been this low since November 20th and today's poor performance of the market erases some of the recent gains it has amassed.
It was also a bad start to the week for the Topix, which fell by 1.3 per cent to 1,222.95, reports Reuters. All of the 33 subsections of the index were down.
Car stocks drop
Car manufacturers were among the big fallers on the index during trading today, as the dollar lost ground against the yen, falling away from a recent five-year high against the currency.
This resulted in Toyota Motor Corp losing 1.9 per cent and Honda Motor Co dropping by 2.8 per cent. Exporters such as the two manufacturers typically perform better on the Nikkei when the yen is weak compared to other major global currencies.
SoftBank Corp was the most traded stock by turnover and the stock slipped back by 3.2 per cent. weighing heavily on the market on the first day of the new week.
Among the reasons for the slow start to the week for the Nikkei was that investors are concerned about the prospect of the Federal Reserve in the US starting to taper its quantitative easing scheme when it meets this week.
Today's 1.6 per cent loss for the Nikkei is in sharp contrast to December 9th, just a week ago, when the index recorded its best daily rise in three months by jumping 2.3 per cent.
An upbeat jobs report from the US – with employment figures beating the expectations of analysts – was among the factors involved in the large rise in the value of stocks last Monday.
Learn about the Asian markets and CFD trading at City Index
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.