Nikkei drops to six-week low

<p>The Nikkei is at its lowest point in six weeks.</p>

The Nikkei has fallen to its lowest point in the last six weeks during today's (June 3rd) trading.

After reaching a five-and-a-half year peak last month, the index has now lost around 15 per cent of its value in the last couple of weeks.

The Nikkei dropped 298.90 points to 13,475.64 at the midday break, below its 13-week moving average at 13,547.62, reports Reuters.

Stefan Worrall, director of equity cash sales at Credit Suisse in Tokyo, said: "The longer and longer this market fails to quickly rebound, the greater the risk is of foreign investor's confidence in Japan outlook is being bended and engendering more selling."

The banking sector is among those to have been hit hard in the last couple of weeks and it has been reduced by over 20 per cent after hitting a four-and-a-half year high on May 20th.

It's been a tough period for the Nikkei and this morning's drop comes after the index lost five per cent of its value on Friday morning.

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.