Nikkei drops to four-week low

<p>The Nikkei is down by 3.3 per cent today.</p>

The Nikkei has slipped by 3.3 per cent today (July 29th) to drop to a four-week low for the index.

After a month of strong gains, the index has fallen for four sessions in a row and has now lost eight per cent of its value in less than a week.

According to a report by Reuters, the Nikkei ended the day of trading below the 13,700 mark for the first time in almost a month today.

Traders working on the Nikkei said the possibility of a planned tax increase being delayed or watered down by prime minister Shinzo Abe may have a negative impact on the equity market in the medium to long run.

With the Nikkei losing 3.3 per cent of its value during the first day of the new week, the broader Topix also dropped 3.3 per cent to 1,128.45.

The losses sustained by the Nikkei at the end of last week denied the index a sixth weekly increase in a row after five weeks of good performances by the index.

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