Nikkei drops in thin trade

<p>The Nikkei was down 1.6 per cent today.</p>

The Nikkei fell by 1.6 per cent in trading today (August 8th), following a thin session.

After slipping by four per cent on Wednesday, it has proven to be a bad week for the index, which has fallen away after an impressive summer so far.

According to a report by Reuters, other Asian stocks rebounded and the Nikkei bucked this trend with its losses.

"Both the export and import figures surprised the market on the upside, thanks to an improving external environment as well as Beijing's targeted measures to shore up the economy," said Zhou Hao, an economist at ANZ in Shanghai.

The Nikkei had been up as much as 1.4 per cent earlier in the day, but as a result of the thin trade it was not able to keep up these gains and fell away later in the session.

Yesterday, when the Nikkei lost four per cent of its value, this was the biggest daily loss for the index in almost two months. It was the worst day since the middle of June for the Nikkei.

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